Pennsylvania Real Estate ate Investment (PRETQ) has released an update to notify the public and investors about its debt resolution strategies.
Pennsylvania Real Estate Investment Trust (PREIT) and its affiliates, collectively known as the Debtors, filed for Chapter 11 bankruptcy on December 10, 2023, and continued operating under the court’s supervision. A Reorganization Plan was confirmed by the Bankruptcy Court on January 23, 2024, with an anticipated effective date on or before February 15, 2024. The Plan includes the equitization of approximately $727 million in second lien debt in exchange for 65% of the new common stock of reorganized PREIT, rolling existing first lien credit and DIP Facility debts into an Exit Facility, and the cancellation of all existing equity interests. The reorganized capital structure will consist of a new revolving credit facility, a term loan, and reinstated secured property-level debt guarantees. The Plan also outlines governance changes post-emergence and the distribution of a $10 million gift to holders of existing equity interests.
For further insights into PRETQ financials, check out TipRanks’ Financials page.
