Mall owner PREIT files for chapter 11 petition to implement restructuring plan

(Reuters) - Mall owner PREIT PEI.N, also known as Pennsylvania Real Estate Investment Trust, said late on Sunday that it filed a chapter 11 petition in a bankruptcy court to execute a prepackaged financial restructuring plan.

The company said that under the plan it will be recapitalized and its debt maturities extended.

The financial restructuring is not expected to have any impact on the company’s shareholders, the statement said, adding that PREIT will pay all vendors, suppliers and employees during the course of chapter 11.

The prepackaged plan received support from over 95% of the company’s creditors, PREIT said on Sunday.

Last month, PREIT said it entered a restructuring support agreement with its bank lenders. The banks have committed to provide an additional $150 million to recapitalize the business and extend PREIT’s debt maturity schedule, the company said.

The company filed for chapter 11 in the United States Bankruptcy Court for the District of Delaware.

Reporting by Kanishka Singh in Bengaluru; Editing by Kim Coghill