Mall owner CBL & Associates Properties Inc. reached a truce with bank lenders led by Wells Fargo Bank NA, agreeing to a restructuring proposal that will end negotiations that started months before the company filed for bankruptcy, WSJ Pro Bankruptcy reported. CBL, one of the largest mall owners in the U.S., filed for bankruptcy in November with $4 billion in debt. Under the chapter 11 plan unveiled yesterday, Wells Fargo and other banks owed more than $980 million would walk away with $100 million in cash and more than $880 million in new loans. Bondholders would receive an 89% stake in the reorganized company, $555 million in new secured notes and $95 million in cash. If approved in the U.S. Bankruptcy Court in Houston, the restructuring proposal would eliminate CBL’s $1.6 billion in debt and preferred obligations and slash the company’s interest expenses.
