Pearlridge not affected by bankruptcy, General Manager David Cianelli says

Dave Segal, The Honolulu Star-Advertiser
·2 min read

Jun. 16—Pearlridge Center said Tuesday it is not affected by the Chapter 11 reorganization bankruptcy filed by its majority owner.

Washington Prime Group, which acquired 51 % of the Aiea shopping center in 2015, has ownership interest in more than 100 shopping centers.

However, the 1.3 million-square-foot Pearlridge Center, which is anchored by Macy's, Bed Bath &Beyond and Ross Dress for Less, is not part of the bankruptcy because it is not wholly owned by Washington Prime Group.

The Columbus, Ohio-based mall owner filed for bankruptcy late Sunday after struggling for more than a year with a pandemic that crushed mall revenue and traffic.

Pearlridge Center General Manager David Cianelli said it's business as usual at the center for its shoppers, tenants, community partners, vendors and contractors, and that they will see no change.

"Certain subsidiaries, including Washington Prime Group's joint ventures and the majority of the Company's special purpose entities holding properties that secure mortgage loans, will not be debtors in the Chapter 11 case, " Cianelli said in a statement. "Pearlridge Center is a non-debtor and will not be impacted by the Company's Chapter 11 financial restructuring."

Cianelli said there's a lot of "great things " happening at the center with several new businesses opening recently or soon to open for business, including Tanaka Ramen, Hot Dog on a Stick, Sweet Okole, Bomb Chicken, Winsor Fashions, Hawaii Hot Pot Shabu Shabu and Mango Mango.

Washington Prime said it has reached agreements with creditors that hold 73 % of the company's secured debt. The company said restructuring its debt would allow it to "strengthen its business and operations going forward."

"The COVID-19 pandemic has created significant challenges for many companies, including Washington Prime Group, making a Chapter 11 filing necessary to reduce the company's outstanding indebtedness, " the company said in a news release.

Washington Prime said it received $100 million in financing from its creditors to support daily operations at its centers, which are concentrated in the Midwest, East Coast and Florida.

In its bankruptcy filing in Texas, Washington Prime listed assets of $4.03 billion and debts of $3.47 billion.

The company said its restructuring agreement with its creditors, led by its largest, SVPGlobal, allows it to deleverage its balance sheet by $950 million. In addition, Washington Prime Group and SVPGlobal anticipate an equity offering of $325 million as part of the restructuring.------The Columbus (Ohio )

Dispatch contributed to this story.