Philadelphia — PREIT Realty has completed a financial and corporate restructuring. This marks the company’s emergence from bankruptcy — it initially filed for Chapter 11 bankruptcy protection in December 2023, with the company’s creditors agreeing to a “prepackaged” bankruptcy. The Philadelphia-based company owns and operates malls in New Jersey, Pennsylvania, Massachusetts, Maryland, Virginia, Michigan, North Carolina and South Carolina, in addition to properties in the multifamily, hotel and healthcare sectors.
PREIT reduced its total debt by roughly $835 million through a previously announced reorganization plan and received commitments of approximately $130 million of new money debtor-in-possession financing and exit revolver financing from a group of investors led by Redwood Capital Management and Nut Tree Capital Management. Existing equity interests, including $384 million of preferred equity interests, were extinguished in exchange for a $10 million cash distribution. PREIT also negotiated a release of guarantees associated with the Fashion District Philadelphia (FDP), with equity interest transferred to joint venture partner Macerich.
Changes were also made to the company’s management and board. Joseph F. Coradino has departed PREIT as chief executive officer and trustee, following a tenure of more than 40 years with the company. Jared Chupaila will serve as CEO, effective immediately. Additionally, Glenn J. Rufrano has been appointed executive chairman of the board of managers and will serve with existing board members Vishal Chanani of Redwood Capital Management and Eric Hsiao of Nut Tree Capital Management.