CBL & Associates Properties Inc. hired Moelis & Co. and Weil Gotshal & Manges as it seeks advice on strategic and financing options including restructuring, Bloomberg News reported. The owner of shopping malls is exploring ways to recapitalize including an exchange offer, in which senior holders of unsecured debt swap their investments for secured debt. The Chattanooga, Tennessee-based company may also discuss a chapter 11 bankruptcy filing as a last resort. A group of CBL’s creditors has hired advisers including PJT Partners Inc. and Akin Gump Strauss Hauer & Feld. The real estate investment trust’s shares fell as much as 11 percent yesterday. They have dropped 68 percent this year, cutting the company’s market capitalization to $63 million. CBL operates more than 100 properties across 26 states, most of which are so-called Class B malls, and has been hurt in part by the closures of retailers including Forever 21. Its top tenants based on revenue at year-end included L Brands Inc., Signet Jewelers Ltd., Foot Locker Inc., a unit of American Eagle Outfitters Inc., Dick’s Sporting Goods Inc. and Ascena Retail Group Inc., filings show. CBL said this month that it was taking actions to offset the anticipated impacts of the COVID-19 pandemic on revenue and cash flow. Chairman Charles Lebovitz, Chief Executive Officer Stephen Lebovitz, President Michael Lebovitz and independent directors agreed to reduce their salaries and fees by 50 percent.
