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Owner of Dayton Mall, Mall at Fairfield Commons files for Chapter 11 bankruptcy

MIAMI VALLEY — The ownership group that manages the Dayton Mall and the Mall at Fairfield Commons has filed for Chapter 11 bankruptcy, the company announced Sunday.

Washington Prime Group runs both malls in the Miami Valley.

“The COVID-19 pandemic has created significant challenges for many companies, including Washington Prime Group, making a Chapter 11 filing necessary to reduce the Company’s outstanding indebtedness,” a statement read. “Throughout the restructuring process, the Company remains committed to serving as a preeminent operator of retail town centers and will continue to serve its guests.”

The company entered bankruptcy protection after executing a restructuring agreement with creditors who hold a majority of the company’s debt.

“The Company will utilize Chapter 11 to implement a comprehensive and consensual financial restructuring of the Company’s corporate-level debt that will allow the Company to substantially deleverage its balance sheet and strengthen its business and operations going forward, either through a full equitization of the Company’s unsecured notes or an alternative value-maximizing transaction that would repay, in full in cash, all of the Company’s corporate-level debt,” Washington Prime Group said.

The company also said it secured $100 million in new money debtor-in-possession financing to support day-to-day operations during the Chapter 11 process to ensure business runs uninterrupted.

The announcement comes about three months after the company warned of possibly having to file bankruptcy.

In February, the company said it was unable to make a $23.2 million interest payment.

Both the Dayton and Fairfield Commons malls have seen a shift in tenants in recent years as longtime clothing retailers Sears and Elder Beerman left anchor spots vacant. Some of those spots have since been filled by furniture stores and, in one case, a church.

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