by Wolf Richter
CBL and Pennsylvania Real Estate Investment Trust were both toast long before the Pandemic. The banks are stuck.
Two publicly traded mall landlords filed for bankruptcy on Sunday: CBL & Associates Properties and Pennsylvania Real Estate Investment Trust. Long before the filing, the shares of these REITs were reduced to near-nothing, and CBL’s unsecured bonds were totally trashed in 2019.
CBL Properties, which owns 107 properties with a total of 66.7 million square feet of space, in 26 states, announced this morning that “CBL & Associates Properties, Inc., CBL & Associates Limited Partnership (the “Operating Partnership”), and certain other related entities” had filed for Chapter 11 bankruptcy. On its balance sheet as of June 30, it lists total debt of $3.8 billion.