DISTRESSED DAILY: Faltering Mall REITs Seek Relief on Debt Terms

Aug. 26, 2020, 12:00 PM

A bad year for retail is turning into a terrible year for the mall owners of America, and for some the worst may be yet to come.

Revenue declines at many struggling mall real estate investment trusts leave the firms poised to breach terms of crucial credit agreements when they report third-quarter results in September. That could trigger defaults on their debt.

With the walls closing in, mall owners like Taubman Centers Inc. and Washington Prime Group Inc. are scrambling to amend credit agreements they can no longer accommodate. They’re asking lenders to relax requirements like minimum leverage ratios, which ...

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