Mall Owner CBL Properties Files Bankruptcy in Bid to Survive
- CBL follows anchor stores like J.C. Penney into court
- Company negotiated debt-for-equity proposal with noteholders
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Mall owner CBL & Associates Properties Inc. filed for bankruptcy, blaming the pandemic that’s upended retailers around the world as well as its lenders, who tried to seize rent payments just as the company struck a debt-cutting deal to help it survive.
The bankruptcy filing in federal court in Houston Sunday includes a proposed debt-for-equity swap that would hand unsecured bondholders a 90% stake in CBL in exchange for slashing about $1.4 billion in debt, according to court papers. At the same time, CBL filed a lawsuit against Wells Fargo & Co., the agent representing senior lenders, asking a judge to rule that the bank’s actions in the days before the bankruptcy case were invalid.