CBL & Associates enters into restructuring support agreement with debt holders

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CBL & Associates Properties Inc. said Wednesday that it has entered into a restructuring support agreement (RSA) with its debt holders, in an effort to strengthen its capital structure. The real estate investment trust, with a focus on retail properties, said the terms of the RSA provides for a “comprehensive restructuring” of its balance sheet through an in-court process expected to commence no late than Oct. 1. The plan is to eliminate about $1.4 billion of unsecured notes in exchange for $500 million of new senior secured notes due June 2028, approximately $50 million of cash and about 90% of the new common equity of the company to holders of the unsecured notes. The company said all day-to-day operations and business will continue as normal. The stock is currently halted for news. It has plunged 81.7% year to date through Tuesday, while the SPDR Real Estate Select Sector ETF has lost 6.5% and the S&P 500 has gained 4.9%.
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