Chattanooga, CBL-Based Shopping Mall Developer Comes Out of Bankruptcy “With a Fresh Start”, Says CEO
A year to the day after economic fallout from the coronavirus pandemic forced CBL Properties to file for bankruptcy, the Chattanooga-based shopping center developer pulled out of his Chapter 11 reorganization on Monday with what the company’s CEO said. , Stephen Lebovtiz, said it was “a new beginning”.
CBL said it reduced its debt and senior bonds by $ 1.7 billion in the past year and will begin trading one new common share on the New York Stock Exchange on Tuesday as part of a significantly improved capital structure .
âIt’s a big day for CBL,â said Lebovitz, who heads a new board of directors for the revamped company. âOur centers and the industry have benefited from a strong rebound in traffic, sales and tenant demand. As a result, we see unique opportunities for CBL using our operational expertise coupled with our improved cash flow and improved capital structure.
CBL, which was founded by Charles B. Lebovitz in 1978 and has been publicly traded since 1993, has developed and owns the Hamilton Place and Northgate shopping centers in Chattanooga as well as over 100 other commercial properties across the country.
The post-restructuring balance sheet includes a new secured term loan of $ 883.7 million, $ 455 million of new secured notes bearing interest at 10% and $ 150 million of new convertible secured notes bearing interest at 7%, of which $ 50 million funded by fresh money that CBL uses to redeem some of its 10% tickets.
All existing common and preferred shares were canceled as part of the bankruptcy reorganization. Common shareholders and existing common unit holders will each receive their prorated 5.5% share in the newly reorganized company and existing preferred shareholders will each receive their pro rata share of 5.5% of the company’s common equity. newly reorganized which will have approximately 20 million shares outstanding.
As previously announced, the newly issued shares are expected to begin trading on the NYSE on Tuesday under the symbol “CBL”.
âOur improved cost structure, disciplined approach to capital investment and our diverse portfolio of independent plots, open-air malls and dominant malls, along with our talented team, position CBL to generate cash flow. available and generate significant shareholder value, âsays Lebovitz.
– Compiled by Dave Flessner who can be reached at email@example.com or 423-757-6340