CBL in forbearance over skipped loan payment

CBL & Associates has gotten a little more time to work out a debt deal. 

The mall developer said Wednesday it has entered into forbearance agreements on its credit agreement and with holders of more than 50% of its operating partnership's 5.25% senior unsecured notes due 2023, according to documents filed with the Securities and Exchange Commission on Wednesday. The agreements end on July 15 or when certain termination events occur.

Based in Chattanooga, Tenn., CBL has a portfolio of 108 properties, primarily in the Southeast and Midwest.

“The company is continuing to engage in negotiations and discussions with the holders and lenders of the company’s indebtedness,” CBL said in its 8-K filing with the Securities and Exchange Commission on Wednesday. “There can be no assurance, however, that the company will be able to negotiate acceptable terms or to reach any agreement with respect to its indebtedness.”

The developer also said the holders of at least 25% of the unsecured notes due in 2023 may now declare them to be due and payable immediately.

CBL skipped an $11.8 million payment on June 1 on its 2023 notes, triggering a 30-day grace period that expired this week. On June 16, the company said it would skip an $18.6 million interest payment due that week on unsecured notes due 2026, triggering another grace period that expires in the middle of this month. 

In an SEC filing in June, CBL said it had "substantial doubt" it would continue to operate as a going concern within about a year. The company cited the effect the pandemic had on "retail and broader markets, the ongoing weakness of the credit markets and significant uncertainties associated with each of these matters."