PREIT Realty has emerged from bankruptcy in an expedited process, reducing its total debt by approximately $835 million, extending its maturity runway and receiving commitments of about $130 million in new debtor-in-possession financing and exit revolver financing from a diverse group of investors. PREIT, which operates multiple malls and shopping centers in the eastern half of the U.S., including Exton Square in the Philadelphia area and New Jersey’s Cherry Hill Mall, had filed for bankruptcy protection in November 2020 and did so again in December 2023.
As part of the reorganization plan, PREIT has gone private and will no longer be reporting to the Securities and Exchange Commission. Additionally, the company has replaced CEO Joseph Coradino, a 40-year company veteran who has served in the top post since 2012, with Jared Chupaila. Chupaila was most recently CEO of Brookfield Properties’retail real estate vertical, where he oversaw the company’s U.S. portfolio of 150+ retail centers. Coradino will stay on in a consultant capacity to assist with the transition.
Under the restructuring plan, PREIT’s existing equity interests, including $384 million of preferred equity investments, were extinguished in exchange for a $10 million cash distribution. Additionally, PREIT negotiated a release of guarantees associated with the Fashion District Philadelphia (FDP) joint venture, under which PREIT transferred its equity interest to its partner Macerich in exchange for a full release and indemnification of any claims PREIT may owe under guaranties issued in connection with the FDP loan agreement.
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