PREIT, owner of several area malls, exits bankruptcy

The owner of several malls in Chester, Delaware and Montgomery counties has emerged from Chapter 11 bankruptcy, completing a financial and corporate restructuring.

Pennsylvania Real Estate Investment Trust — commonly referred to as PREIT — emerged from bankruptcy earlier this week through an expedited process, saying the reorganization “sets up PREIT with a stronger and leaner balance sheet.”

PREIT owns and manages six Pennsylvania properties, including Plymouth Meeting Mall in Plymouth Township, Montgomery County; Willow Grove Park Mall in Abington Township, Montgomery County; Exton Square Mall in West Whiteland, Chester County; and Springfield Mall in Springfield, Delaware County.

The company filed for Chapter 11 bankruptcy protection in December 2023 — its second filing since 2020. The company said in its December filing it was taking steps to execute a “comprehensive reorganization.”

As a result of its corporate reorganization, PREIT is no longer a publicly traded company. In addition, the company has implemented changes to its management and board of directors.

Jared Chupaila has been named chief executive officer of PREIT by the company’s board of managers, effective immediately. He will also serve as a member of the PREIT’s board.

Chupaila succeeds Joseph F. Coradino, who held the title of chief executive officer since 2012 — and led the company through the most recent restructuring. Coradino will continue to serve in a consultant capacity to the company through the transition. He had been with the company for more than 40 years, serving in a variety of capacities.

Chupaila has more than 20 years of experience in commercial real estate executive leadership, corporate strategy, asset management, and leasing and operations. He most recently served as CEO of Brookfield Properties retail real estate vertical (formerly GGP Inc.), where he oversaw the company’s U.S. portfolio of more than 150 retail centers spanning 150 million square feet across 43 states.

PREIT’s pre-packaged reorganization plan was supported by 100% of the company’s secured lenders, according to a press release.

Through the plan, PREIT reduced its total debt by approximately $835 million and received commitments of approximately $130 million of new financing from a diverse group of leading investors Redwood Capital Management LLC and Nut Tree Capital Management LP.

In addition, PREIT’s 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 joint venture — transferring its equity interest in the Fashion District Philadelphia to its joint venture partner, Macerich, in exchange for a full and complete release and an indemnification of any claims that PREIT may owe under its guarantees issued in connection with the Fashion District Philadelphia Loan Agreement, the release stated.

In addition to the appointment of a new CEO, Glenn J. Rufrano has been named executive chairman of the board of managers effective immediately and will work alongside current board members, Vishal Chanani of Redwood Capital Management LLC and Eric Hsiao of Nut Tree Capital Management LP.

PREIT previously filed for bankruptcy in November 2020, emerging from bankruptcy one month later — on Dec. 11, 2020. The company said at the time that the filing was the next step in executing its financial restructuring plan.

Headquartered in Philadelphia, PREIT owns and manages retail shopping malls in eight states in the Eastern U.S. with a concentration in the Mid-Atlantic and greater Philadelphia region.