PREIT, the owner of Exton Square Mall, is set to go private after it emerged from bankruptcy protection for the second time in four years, writes Paul Schwedelson for the Philadelphia Business Journal.

When it filed for bankruptcy in December, the company faced over $1 billion in debt coming due. Now, PREIT entered a prepackaged reorganization plan which will wipe out its debt and establish a new ownership structure. The plan also includes a one-time payout to shareholders.

The leading investors of PREIT’s new ownership include Redwood Capital Management and Nut Tree Capital Management.

According to documents filed in the U.S. Bankruptcy Court for the District of Delaware, both PREIT’s $420 million first lien and $727 million second lien-funded debts were canceled.

PREIT will pay $10 million to shareholders. This money will be split based on the amount of shares they each own and the company will no longer be publicly traded.

The prepackaged reorganization plan was specifically designed to ensure that the Philadelphia-based company does not incur further costs.

Malls owned by PREIT continued to operate regularly throughout the bankruptcy proceedings.

Read more about PREIT going private after emerging from bankruptcy in the Philadelphia Business Journal.

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