Columbus, Ohio – (COMMERCIAL THREAD) – Washington Prime Group Inc. (“WPG” or the “Company”) today announced that it and each of its debtor affiliates have exited the Chapter 11 process, signifying the successful completion of the financial restructuring of the Company and the implementation of its Reorganization Plan (the “Plan”). The plan, which was led by plan sponsor SVPGlobal, and which received overwhelming support from the company’s creditors and shareholders, was upheld by the United States Bankruptcy Court for the Southern District of Texas on September 3. 2021.
WPG emerged from bankruptcy as a stronger, more stable company with nearly $ 1 billion in debt reduced and vastly improved overall liquidity. Operating as a private holding company, majority owned by SVPGlobal, WPG will be well positioned to take advantage of opportunities to enhance its portfolio and strengthen its relationships with customers, tenants, lenders, partners and other constituents.
With the successful exit of WPG from bankruptcy, Lou Conforti is stepping down as Managing Director. Mark Yale, executive vice president and chief financial officer of WPG, and Josh Lindimore, executive vice president and head of leasing for the company, will serve as interim co-CEOs. Additionally, it was announced today that Sujan Patel, Jeff Johnson and Martin Reid have been named new members of the Company’s Board of Directors.
Lou Conforti said: “The relatively rapid financial restructuring of WPG is the result of the unwavering focus of my colleagues and SVPGlobal, our financial partner who shares our passion for the industry in which we operate. SVPGlobal recognizes the value of our brand, the potential of our assets and, just as important, our people, in business and in the field. As WPG emerges from bankruptcy, the time has come for me to step down from my role as CEO and move into an advisory role. It’s a “new beginning” for WPG and myself. I have enjoyed running this organization and wish it every success.
Victor Khosla, Founder and Chief Investment Officer of SVPGlobal, said: “As WPG rolls out of Chapter 11, we are very excited about what lies ahead. With a significantly stronger balance sheet and greater financial flexibility, WPG is well positioned for the future. We expect that WPG’s strong portfolio of assets will allow it to remain a leader in retail, and we look forward to partnering with the experienced team at WPG. We thank Lou for leading WPG through a period of unprecedented change. We wish him good luck.
During the Chapter 11 process, Kirkland & Ellis LLP acted as legal counsel to the Company, and Alvarez & Marsal North America, LLC acted as restructuring counsel. Guggenheim Securities, LLC served as the company’s investment banker. Davis Polk & Wardwell LLP acted as legal counsel and Evercore Group LLC as investment banker and financial advisor to SVPGlobal. Wachtell, Lipton, Rosen & Katz acted as legal counsel and PJT Partners LP acted as investment banker for an ad hoc group of consenting creditors.
About Washington Prime Group
Washington Prime Group Inc. is a recognized leader in the ownership, management, acquisition and development of commercial properties. The Company combines a national real estate portfolio with its expertise across the shopping center industry to provide new opportunities for retailers seeking growth in the United States. Washington Prime Group® is a registered trademark of the Company. Learn more about www.washingtonprime.com.
SVPGlobal is a global investment firm focused on distressed debt, special situations and private equity opportunities with over $ 18 billion in assets under management. The company, founded by Victor Khosla in 2001, has around 130 employees, including around 50 investment professionals, spread across its main offices in Greenwich (CT), London and a presence in Tokyo. In total, SVPGlobal has invested over $ 36 billion in capital since its inception in 2001, and has completed over 150 major transactions. SVPGlobal is a signatory of the Principles for Responsible Investment (PRI) supported by the United Nations. The PRI are recognized as the leading global network of investors committed to integrating environmental, social and governance (ESG) considerations into their investment decisions. Learn more about www.svpglobal.com.