NEW YORK, June 11, 2021 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Washington Prime Group, Inc. ("WPG" or the "Company") (NYSE: WPG). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether WPG and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On February 16, 2021, WPG disclosed that its operating partnership, WPG L.P., had "elected to withhold an interest payment of $23.2 million due on February 15, 2021 with respect to WPG L.P.'s outstanding Senior Notes due 2024," and that "WPG L.P. has a 30-day grace period to make the interest payment before such non-payment constitutes an 'event of default.'" The Company further advised that, in an event of default, certain counterparties to the senior notes "could accelerate the outstanding indebtedness due . . . making such indebtedness due and payable, which would result in a cross-default with respect to some of WPG L.P.'s or the Company's other indebtedness."
On this news, WPG's stock price fell $4.59 per share, or 38%, to close at $7.49 per share on February 16, 2021.
Then, on March 4, 2021, Bloomberg reported that WPG "is preparing a potential bankruptcy filing as time runs out to avert default after it skipped an interest payment on its debt, according to people with knowledge of the plans." On this news, WPG's stock price fell $3.77 per share, or 60%, to close at $2.51 per share on March 4, 2021. Then, on March 16, 2021, WPG disclosed that it had entered into a forbearance agreement with respect to the Senior Notes due in 2024 and stated there was substantial doubt as the Company's ability to continue as a going concern. The Company confirmed that it had engaged in discussions for a financial restructuring.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.