WPG was formed in 2014 as a spinoff from Simon Property Group, one of the biggest REITs. It was acquired by Glimcher Realty in 2015 and owns 100 malls and shopping centers in the U.S., mostly within the Midwest, the Northeast, Texas, and Florida.
Prior to filing, the group was restructuring and entered into a support agreement with creditors that hold roughly 73% of the principal amount of WPG’s secured corporate debt and 67% of its unsecured notes. Under Chapter 11 protection, the group will restructure its debt to shore up business operations, Chain Store Age reported.
WPG’s financial struggles reveal how hard the COVID-19 pandemic hit the retail industry, particularly malls and shopping centers. The pandemic prevented many retailers from paying their leases to property groups like WPG.
WPG has secured $100 million in financing from creditors to support day-to-day operations at its centers, and the agreement provides the group a four-year extension on its remaining credit facility debt. It also contemplates a $325 million equity rights offering with SVPGlobal as plan sponsor.