Replies to post #42 on Pennsylvania R.E.I.T. (PRETQ)

[pappi]

And what was that all about at end of day, yesterday?? Quite a pop on volume just prior to close.

-p

[Enterprising Investor]

Mall Owner Pennsylvania REIT Approved for Faster Bankruptcy (11/03/20)

BY ALLISON MCNEELY

Pennsylvania Real Estate Investment Trust, owner of 26 retail properties concentrated in the mid-Atlantic region, prevailed over a creditor objection to approve its bankruptcy plan and disclosure statement ahead of the critical holiday shopping season.

- The mall operator’s motion to schedule a combined hearing on Nov. 24 to confirm its prepackaged bankruptcy plan and disclosure statement was approved by Judge Karen B. Owens in a Delaware court hearing Tuesday

- “It is critical that the debtors confirm their plan prior to Thanksgiving, so the debtors’ sole focus is on maximizing their revenues during the holiday season,” Pennsylvania REIT said in its filing

- The U.S. Trustee and dissenting creditor Strategic Value Partners LLC objected to the motion, with counsel for SVP arguing that the prepackaged plan is unconfirmable and creditors need time to prepare for litigation

- Note: Pennsylvania REIT secured 95% lender support for its restructuring plan, with SVP, which holds about 5% of the debt, refusing to sign onto the plan before it filed for Chapter 11, according to a company filing

- Consenting lenders are “setting themselves up for Chapter 22,” Andrew Glenn of Kasowitz Benson Torres, counsel for SVP, said in the hearing. “This plan is really an extend-and-pretend deal”

- The restructuring agreement is based on the assumption that the company’s financial performance will remain steady through 2023, which is not realistic given the current retail environment, Glenn said

- PREIT also received court approval for a series of first-day motions that will allow it to continue operating while in bankruptcy, including the right to pay employee wages and access its cash management system

- The case is Pennsylvania Real Estate Investment Trust, 20-12737, U.S. Bankruptcy Court, District of Delaware

https://www.bloomberglaw.com/product/health/document/X7HOG6JS000000?resource_id=6900b4d95607a94805fff2e952e1c8f8

[Enterprising Investor]

Plan is confirmable.

Under section 1126(c) of the Bankruptcy Code, an entire class of claims is deemed to accept a plan if the plan is accepted by creditors that hold at least two-thirds in amount and more than one-half in number of the allowed claims in the class.