Chattanooga-based CBL to release earnings Thursday amid debt talks

Northgate Mall is in HIxson.
Northgate Mall is in HIxson.

Chattanooga-based shopping center owner CBL & Associates Properties Inc., which is in extended talks with lenders over its debt, plans to report second quarter earnings on Thursday.

The company said it will not hold a conference call to discuss the results after those are released following the close of the markets.

CBL which operates 108 properties nationally including Hamilton Place and Northgate malls in Chattanooga, had extended talks until today with lenders related to two forbearance agreements concerning its debt, a Securities and Exchange Commission filing shows.

Also, the company extended forbearance discussions regarding a credit agreement until this Wednesday, a company filing said.

That agreement called on CBL to provide information related to some of its properties including a list of offered, currently unencumbered, properties suggested as new collateral for secured lenders. The other information was to include tenant sales reporting for fiscal year 2019, annual rent rolls as of June 30, and co-tenancy schedules.

Also, CBL was to deliver cash flow statements and projections, and it was to deliver 13-week cash flow forecasts and variance analyses for projections both outside and within a bankruptcy proceeding.

Nearly a month ago, the company first entered into forbearance after CBL said it chose to not make interest payments of $18.6 million and $11.8 million.

In May, the company posted a first quarter net loss of $133.9 million, compared to a net loss of $50.2 million a year ago.

Also in May, CBL reported it received just 27% of billed cash rents for April and its May collection rate likely will be in the 25% to 30% range amid closings during the outbreak.

In June, CBL said there was "substantial doubt" it will continue to operate as a going concern.

In July, CBL's shares plunged after Bloomberg reported the company may be preparing a bankruptcy filing.

The company is in talks with lenders after the downturn in revenue caused by the temporary closing of malls and retail stores earlier this year amid the coronavirus outbreak. Key tenants of the mall company, such as J.C. Penney and the owner of Ann Taylor and Catherines shops, have filed for bankruptcy restructuring during the pandemic.

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