Mall Operator on Brink of Default After Retail Rents Go Unpaid
- CBL Properties skips bond payment amid talks with creditors
- Failure to make good could trigger a cascade of defaults
Brookfield Square in Milwaukee.
Source: CBL Properties
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Unpaid rent from retailers is upending turnaround efforts at CBL & Associates Properties Inc. and forcing the mall owner to skip an upcoming interest payment while it negotiates with creditors.
CBL said in a filing it withheld the $11.8 million due June 1 on its 5.25% unsecured notes, which mature in 2023, and invoked a 30-day grace period. Last week, the company drew $280 million from its line of credit, furloughed employees and halted redevelopment investments designed to reverse the decline facing many American malls.