For more than 40 years, we have been offering our customers the best of retail, gastronomy and entertainment. We look forward to taking care of you for another 40 years. Thank you for your continued support of CBL. CBL Properties plays an important role in the communities in which we find ourselves. Our real estate is a shopping mall that serves as a great employment base, a valuable partner of the community and generates considerable taxes that support programs in our communities. I write to communicate the important steps we are taking to position CBL for future success. Because Gotshal – Manges LLP is legal counsel for the company and Moelis-Company as restructuring advisor. On August 18, CBL entered into a restructuring support agreement („RSA“) with a group representing the majority of our bondholders, which will allow us to significantly strengthen our balance sheet and our organization. In order to implement this extensive restructuring, CBL – Associates Properties, Inc., CBL – Associates Limited Partnership and some related companies launched Chapter 11 voluntary protection in the U.S. Bankruptcy Court of the Southern District of Texas on November 1. CBL Associates Properties Inc. filed on November 2 Chapter 11 in the bankruptcy court in Houston, the company announced that it said it was trying to implement the health restructuring support arrangement it entered into in mid-August with the holders of the majority of the company`s $1.4 billion in unurseced senior notes. Lebovitz added: „We have continued negotiations with lenders as part of our secured credit facility since the signing of the RSA and are awaiting further discussions to reach an amicable agreement between the company, bondholders and lenders of credit facilities during the bankruptcy proceedings.
The RSA is considering agreed terms for a complete restructuring of the company`s balance sheet (the „plan“), agreed in advance. The plan will provide the company with a significantly higher balance sheet, reducing its overall debt and liabilities by approximately $1.5 billion, increasing debt duration and increasing liquidity while maintaining operational coherence. According to Renzi, the company „had no choice but to start these Chapter 11 business on an expedited timetable in order to protect the company and its stakeholders within the time frames of the restructuring agreement, instead of extending the notification period further in order to continue the amicable negotiations, as the company had planned.“ For example, the CBL`s senior management structure, including CEO Lebovitz, his father, president and founder Charles Lebovitz, as well as his brother and president Michael Lebovitz, are expected to enter into new employment contracts for executives.