Washington Prime Group Inc. (WPG) is a retail Real Estate Investment Trust (REIT) that specializes in the ownership, management, purchase, and development of commercial centers and private retail properties.
The Company consolidates a public land portfolio with its expertise across the entire mall area to increase revenue through careful resource management and provide new opportunities to retailers seeking growth and development across the United States. Washington Prime Group® is a registered trademark of the Company.
What is the reason for the lawsuit against Washington Prime Group?
WPG L.G is a Washington Prime Group operating partner whose recent acts have resulted in a lawsuit. Multiple companies are suing the company for failing to notice that WPG’s financial situation was rapidly deteriorating. When a result, there was a significant vulnerability in the Company’s ability to satisfy its capital development commitments as they were due, causing favorable statements about the Company’s business, operations, and prospects to be materially misleading.
WPG L.G withheld $23.2 million in interest payments on outstanding Senior Notes due 2024. There is a grace period of 30 days after which the interest payment becomes non-payable, resulting in an event of default. The longer delay may hasten the repayment of outstanding debts, perhaps leading in cross-default.
The Company intends to complete the Restructuring and generate sufficient liquidity to meet its commitments and working requirements. There can be no assurance that the restructuring will take place or be successful. As the Company conducts its business, the Company maintains its focus on driving operational performance and collaborating with its partners to produce revenue. If the Restructuring is unsuccessful, the Company’s cash position may not be sufficient to support day-to-day tasks or drives.
The Company’s ability to meet its capital design commitments as they become due raises significant doubt about its ability to proceed due to its capacity.