NEW YORK, June 14 /PRNewswire-FirstCall/ -- Feldman Mall Properties, Inc. (Pink Sheets: FMLP) made the following announcements:
Preferred Shares Repurchase
On June 10, 2010, the Company executed and delivered a Preferred Shares Repurchase Agreement (the "Agreement") with Inland American Real Estate Trust, Inc. ("Inland"), pursuant to which the Company agreed to repurchase 2,000,000 shares of 6.85% Series A Cumulative Convertible Preferred Stock, liquidation preference $25.00 per share, constituting all shares of that Series, including all accrued and unpaid dividends, for a purchase price of $1,000,000.00 payable in cash at closing. Closing is subject to a number of conditions, including that the Company shall have concluded a private placement of securities realizing gross proceeds of not less than $2,000,000. No assurance can be given that the Company will be able to satisfy all of the conditions to closing. Inland has the right to terminate the Agreement in the event that closing shall not have occurred on or before September 30, 2010. In the event that the transaction is closed and completed, the only outstanding class of equity securities of the Company will be Common Stock, par value $0.01 per share, of which 14,292,479 shares were outstanding on June 7, 2010, and Inland will continue to hold 1,283,500 shares of that class.
Golden Triangle Mall
JP Morgan Chase Bank, N.A. (the "Bank"), the holder of the indebtedness collateralized by the Golden Triangle Mall, has advised the Company's subsidiary, FMP Denton LP ("Denton"), that it will no longer consider an extension of the forbearance agreement or modification and restoration of the loan. The Bank has decided to exercise its rights and foreclose its lien against the Mall, but has agreed to continue to use Feldman Equity Management LLC ("FEMLLC") for professional real estate management services until completion of a foreclosure sale, and, in the event that the Bank is the successful bidder at the foreclosure sale, to separately engage FEMLLC to manage the Property. The Bank has further agreed, upon completion of a foreclosure sale, to release Denton and the Company's subsidiary, Feldman Equities Operating Partnership LP ("FEOP"), from all liabilities and obligations under the debt, including FEOP's $1,341,500 guarantee. Denton shall additionally receive reimbursements from the Bank of funds previously expended.
About Feldman Mall Properties, Inc.
The Company's shares of common stock are quoted on Pink OTC Markets, a privately-owned company formerly known as Pink Sheets, which operates Pink Quote. Following foreclosure of the Golden Triangle Mall, and excluding the Northgate Mall, located in Cincinnati, Ohio, which is in receivership, the Company will continue to own one (1) regional mall, Stratford Square Mall, located in Bloomingdale, Illinois, and containing 1.3 million square feet. For more information on Feldman Mall Properties Inc., visit the Company website at www.feldmanmall.com.
SOURCE Feldman Mall Properties, Inc.