BOARDMAN, Ohio (WYTV) – Southern Park Mall owner Washington Prime Group is in danger of defaulting on a loan after missing a $23.2 million interest payment that was due Monday.
According to a filing with the U.S. Securities and Exchange Commission (SEC), Washington Prime Group has a 30-day grace period to make the interest payment before it constitutes an “event of default.”
According to the SEC, the board of directors for Washington Prime Group approved an $11.6 million compensation package for 17 “senior employees” in the company. That announcement came four days before filing the loan default.
The compensation comes with benchmarks that must be met by company executives or the money must be paid back.
Jonah Karzmer’s indoor golf facility will soon be the newest addition to the mall. He says the situation with Washington Prime Group doesn’t seem to impact them.
“I was assured that the Southern Park Mall is not affected by this and that our project and our construction plans and everything that we’ve laid out with them is 100 percent still on. We take over the space sometime around April 1 and start construction in April to be open by, hopefully, October 1.”
Officials with Washington Prime Group said that the payment situation should not impact the mall, and they will operate as usual.