Group that owns Fayette Mall delays bankruptcy, misses $6.9 million interest payment
As it missed a $6.9 million interest payment due Thursday, the company that owns and operates Fayette Mall announced this week that it will delay its expected chapter 11 Bankruptcy filing.
The daily operations of Fayette Mall are not expected to be affected by the bankruptcy filing, CBL Properties spokesperson Stacey Keating said.
The group had initially planned to file for bankruptcy on Thursday but announced it would be delaying the filing until Nov. 2.
The company elected not to pay a $6.9 million interest payment due Thursday, saying that it has a 30-day grace period before the payment is considered in default.
CBL Properties is not pursuing a sale of the company, Keating said. “We expect CBL to continue to be led by its existing experienced and dedicated management team.”
The company, which owns more than 80 properties around the country, reported in July that the outbreak of COVID-19 had worsened financial troubles and had led to a missed debt payment of $11.8 million.
The retail business is among several industries that have suffered major losses during the outbreak of coronavirus. Fayette Mall was closed for months due to COVID-19 restrictions, and once it opened, it implemented several social distancing and capacity guidelines.
The mall has since had to put in place separate restrictions after a shooting at the mall killed one person and injured two others in August. Police said at the time that the suspected shooter knew the intended target of the shooting and that it was not random.
After the shooting, the mall prohibited unattended young people under 18 from being in the building on weekends.
This story was originally published October 15, 2020 at 3:49 PM.
