Lehigh Valley Mall co-owner files for bankruptcy; mall is unlikely to be affected | Regional News from Lehigh Valley

0


Real estate investment company PREIT, co-owner of Lehigh Valley Mall, filed for Chapter 11 bankruptcy in Delaware on Monday.

Charles Laputka is a bankruptcy lawyer in Allentown. He points out that Chapter 11 bankruptcy does not mean the company is going out of business. It allows the company to restructure its debt and facilitate its repayment.

Bankruptcy is an effective tool that can help you extend some of these due dates for these loans, and I think that’s what’s happening here,” Laputka said. “Bankruptcy puts a stay in place of any immediate action by a creditor.”

The company says 95% of its creditors support the plan. For now, operations in their more than 20 shopping centers will remain the same.

PREIT joins the long line of retailers shaken by the pandemic. The company would risk being delisted from the New York Stock Exchange.

“Most people and most businesses aren’t set up to experience a loss of income for 6, 9, 12 months,” Laputka said. “Reorganization bankruptcy takes into account the loss of short-term income and allows you to take that loss of short-term income and pay it back significantly. “

However, the Lehigh Valley Mall is unlikely to be affected.

“According to the schedule they filed with the Delaware bankruptcy court, the Lehigh Valley shopping center is profitable on its own,” Laputka said.



Source link

Share.

Comments are closed.