PENNSYLVANIA REAL ESTATE INVESTMENT TRUST: going-concern / distress — PREIT files prepackaged Chapter 11 with $60M DIP, restructuring plan converts debt to equity

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

Filed voluntary Chapter 11 on Dec 10; RSA with 100% of first- and second-lien lenders; $60M DIP backstopped by second-lien lenders.
Plan: first-lien paid in full; second-lien get 65% of new equity; preferred and common share $10M pool subject to conditions.
Cherry Hill Mall loan extended to Dec 15; Woodland Mall loan reinstated, maturity extended to Jan 24 or DIP order.
Transferred Fashion District Philadelphia ownership to Macerich in exchange for release and indemnification.
CEO and President severance reduced; certain subsidiaries released from guaranties under credit agreements.

item 1.01 item 1.03 item 2.04 item 7.01 item 8.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST reported a default on debt of approximately $868.9 million.

Principal: approximately $868.9 million
Event: default

Exact text from the filing

The filing of the Chapter 11 Cases described above in Item 1.03 and the consummation of the Plan may constitute a default under certain property-level debt facilities (in an aggregate outstanding principal amount of approximately $868.9 million), ground leases, operating leases and other contractual and non-contractual obligations

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Distress & Bankruptcy SEC 8-K Item 1.03 confidence 0.9

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST entered chapter 11 in United States Bankruptcy Court (petition 2023-12-10).

Proceeding: chapter 11
Court: United States Bankruptcy Court
Petition: 2023-12-10

Exact text from the filing

On December 10, 2023, the Debtors voluntarily filed the Chapter 11 Cases in the United States Bankruptcy Court.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST entered into Restructuring Support Agreement with creditors holding 100% of the loans outstanding under the Debtors’ First Lien Credit Agreement and 100% of the loans outstanding under the Debtors’ Second Lien Credit Agreement (effective 2023-12-07).

Action: entry
Agreement: credit facility
Counterparty: creditors holding 100% of the loans outstanding under the Debtors’ First Lien Credit Agreement and 100% of the loans outstanding under the Debtors’ Second Lien Credit Agreement
Effective: 2023-12-07

Exact text from the filing

On December 7, 2023, Pennsylvania Real Estate Investment Trust (the “Company”) and certain of its direct and indirect subsidiaries (collectively, the “Debtors”) entered into a Restructuring Support Agreement (including all exhibits, annexes and schedules thereto, the “RSA”) with creditors holding 100% of the loans outstanding under the Debtors’ First Lien Credit Agreement (as defined below) (the “Supporting First Lien Lenders”) and 100% of the loans outstanding under the Debtors’ Second Lien Credit Agreement (as defined below) (the “Supporting Second Lien Lenders”, and together with the Supporting First Lien Lenders, the “Supporting Lenders”).

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41 debt financings filed in the last 30 days. Browse all debt financings →

Source: SEC EDGAR

accession 0001193125-23-292055

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