CBL Properties Filed for Chapter 11 Bankruptcy
Posted on 11/03/2020
Chattanooga, Tennessee-based CBL & Associates Properties Inc. (CBL Properties) is a real estate investment trust that invests in shopping centers, primarily in the Southeastern and Midwestern United States. CBL Properties filed for Chapter 11 bankruptcy. CBL has assets and estimated liabilities between US$ 1 billion to US$ 10 billion. CBL Properties will continue to operate as the company trailblazes through the restructuring process. According to court documents, there is a proposed debt-for-equity swap that would hand unsecured bondholders a 90% stake in CBL in exchange for slashing about US$ 1.4 billion in debt. More than 30 of CBL Properties’ tenants have filed for court protection this year.
CBL Properties also filed a lawsuit against Wells Fargo & Co., the agent representing senior lenders. CBL Properties is asking the judge to rule that Wells Fargo’s actions in the days before the bankruptcy case were invalid.
CBL owns Hanes Mall, Friendly Center, and Alamance Crossing, as well as other malls. CBL was founded in 1978 by Charles B. Lebovitz and five business associates.
