Washington Prime Group Inc., the owner of a nationwide group of shopping malls reeling from the pandemic, approached investors to sound out early interest in providing bankruptcy financing as it prepares to file for chapter 11, Bloomberg News reported. Guggenheim, the company’s investment bank, has asked prospective lenders to indicate their interest in providing a potential $150 million debtor-in-possession loan. The real estate investment trust, which owns about 100 malls throughout the U.S., acknowledged that it may have to file for court protection from creditors amid “substantial doubt” about its ability to keep operating. Bloomberg News previously reported that Washington Prime was contemplating bankruptcy. The mall owner’s bankruptcy plans are not yet final and the discussions around the financing could change. Washington Prime is under forbearance with creditors until March 31 after missing a Feb. 15 interest payment. It remains in talks with creditors around a financial restructuring, according to an earnings statement released Wednesday.
