Washington Prime Group Inc.’s creditors are having difficulty advancing discussions over a planned chapter 11 filing as groups tussle over dividing the mall owner’s assets, Bloomberg News reported. The slow talks have sparked several deadline extensions -- the latest announced on Wednesday -- with sticking points, including creditors’ rights to assets that aren’t already being used as collateral for Washington Prime’s debt. The company on Monday reported a $55 million loss for the three months through March 31. At issue is the division of new equity, debt and cash each lender group would receive from the bankruptcy plan. Given the diminishing appeal of owning a mall chain, the parties are all pushing to minimize their equity exposure and maximize their take of new debt, they added. After the latest extension, Washington Prime’s forbearance agreements with lenders are set to expire May 19.
