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, Washington Prime Group has a 30-day grace period to make the interest payment before it constitutes an “event of default.”
Washington Prime Group has hired legal counsel during its discussions with lenders and plans to use the 30-day grace period for those discussions, according to the filing. During that time, the company will operate as usual.
The Kirkland and Ellis law firm that Washington Prime Group hired is used to help companies restructure.
Tuesday, a spokesperson for Washington Prime released the following statement:
“Washington Prime Group’s board of directors has engaged advisors to explore strategic alternatives in order to strengthen the company’s balance sheet. We intend to continue business as usual at Washington Prime Group’s properties, where our tenants, sponsors and employees will continue operating as normal, with a focus on providing a safe and enjoyable experience for our guests.”
Washington Prime’s stock dropped over 30% after the filing.