Fayette Mall owner buys more time on debt after 2nd missed payment. $30M due next week
Unpaid debt has piled up to $30 million for CBL & Associates Properties, which owns the Fayette Mall, while negotiations continue with creditors under a delayed deadline.
The company entered into a new temporary payment freeze, called a forbearance agreement, with some of its noteholders after failing to pay $18.6 million in debt due on June 15. The company initially let the 30-day grace period come and go, according to a filing with the Securities Exchange Commission. The new forbearance agreement expires Wednesday, according to the filing.
CBL Properties’ previous forbearance agreement for a missed $11.8 million debt payment was set to expire on July 15, but the company and its debt holders agreed to extend that deadline to Wednesday as well, according to the filing.
“The company is continuing to engage in negotiations and discussions with the holders and lenders of the company’s indebtedness,” CBL Properties representatives said in the filing. “There can be no assurance, however, that the company will be able to negotiate acceptable terms or to reach any agreement with respect to its indebtedness.”
CBL Properties has cited COVID-19 as a reason for its financial struggles in recent months. The company owns more than 60 properties nationwide, and is largely dependent on rent from tenants in its malls and shopping centers, including Fayette Mall. Some tenants who have been closed or suffering their own financial problems from the coronavirus haven’t been able to come up with the money the company is owed.
“We have determined that there is substantial doubt about our ability to continue as a going concern,” Farzana Khaleel, the company’s executive vice president, said in a June SEC filing.
One investment expert previously said the company may need to file for bankruptcy if it can’t come to agreeable terms with its lenders.
The company’s stock value has increased over the last week, but is still far below its 52-week high. The share price closed at 28 cents per share Thursday evening.
This story was originally published July 17, 2020 at 10:08 AM.