Chapter II bankruptcy filed by an Owner of 100 malls in the US


The Washington Prime group mall owner filed for the chapter !! Bankruptcy on Sunday. The company was forced to temporarily close down around 100 shopping centres due to the COVID-19 pandemic, as many shops weren’t able to pay the rent.
The estimated assets of the company range from US$1 billion to us$10 billion; this estimate was made while they were filing for bankruptcy. The US economy is rebounding after 140 million Americans have been vaccinated fully, and the business is reopening. Still, the stay-at-home order by the previous government has led to the closure of many companies.
Last year various other mall owners like CBL, Pennsylvania real estate investment trust, and associated properties had filed for bankruptcy. However, as per Reuters, Washington prime was formed in 2014 after mall giant Simon property group was preparing to file for bankruptcy protection.
The fallout caused by the pandemic last year forced Washington prime to close some of its properties for some time and relax the rent collection from tenants; this in return squeezed down the finances of the mall owners.
Due to the coronavirus epidemic, Washington Prime’s rental revenues dropped by around US$127 million from 2019 levels because of the pandemic.
Compared to the same period in 2020, Washington Prime’s rental income was down nearly $20 million in the first three months of this year. The cash flow of Washington prime for three months was US43.3 million, down from US$10 million the previous year at the same time.


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