A month after filing for chapter 11 protection, the U.S. Bankruptcy Court for the District of Delaware on Monday approved a pre-packaged restructuring plan for mall owner Pennsylvania Real Estate Investment Trust (PREIT), the Philadelphia Business Journal reported. The Philadelphia company expects to emerge from bankruptcy in early December, later than its initial expectation to be done with the proceedings by the end of November. PREIT is hopeful the reorganization will give it more time and money to become a stronger company. Under the plan, the shopping mall owner will have access to $130 million in new financing as it relates to a senior unsecured facility and the elimination of a $20 million revolving facility designated for repaying mortgages. The company also said that as part of the reorganization, its debt maturity schedule will be extended by three years. None of these proposals are final until the agreements are executed and the company emerges from bankruptcy. PREIT voluntarily filed Nov. 1 for chapter 11 protection after Strategic Value Partners, which owns 5 percent of PREIT’s debt, objected to a restructuring plan that 95 percent of PREIT’s other lenders approved. Strategic Value Partners finally relented and approved the pre-packaged plan. PREIT has continued to operate its malls during bankruptcy. When it filed for bankruptcy, PREIT listed $2.4 billion in total assets and total debt of just over $2 billion. Of its debt, $913 million is an unsecured loan with Wells Fargo, which is its largest creditor.
