In this news, we discuss the Mall operator CBL files for Chapter 11 bankruptcy protection.
(Reuters) – Shopping center operator CBL & Associates Properties Inc CBL.N voluntarily filed for Chapter 11 bankruptcy protection on Sunday, becoming the latest shopping center operator seeking to restructure its business as the COVID-19 crisis has caused extended shutdowns.
Mall operators in the United States have been strapped for cash amid the pandemic as people have stayed indoors and resorted to online shopping.
Retailers, including JC Penney Co Inc, one of CBL’s biggest tenants, already struggling with customers’ abandonment of traditional stores for online shopping, have also resorted to bankruptcy filings.
CBL’s filing follows that of Pennsylvania Real Estate Investment Trust earlier Sunday, which filed a Chapter 11 petition to execute a prepackaged financial restructuring plan.
The bankruptcy has already been reported by Bloomberg, which said the process would give the company a chance to continue operating while reorganizing its finances and operations.
In a case filed with the US South District Bankruptcy Court of Texas, CBL listed both assets and liabilities estimated to be between $ 1 billion and $ 10 billion.
CBL announced in August that it had entered into a restructuring support agreement with a group of bondholders to enable it to strengthen its balance sheet and its organization.
Reporting by Bhargav Acharya in Bengaluru; Editing by Krishna Chandra Eluri
Original © Thomson Reuters