CBLAQ - CBL reaches settlement on key issues in Chapter 11 cases

CBL Properties (CBLAQ) enters an amended and restated restructuring support agreement ("RSA") with its credit facility lenders and unsecured noteholders, setting the company up for emergence from Chapter 11 proceedings.CBL shares climb 4.8% in premarket trading.The amended RSA represents a comprehensive settlement between parties of substantially all key issues relating to its Chapter 11 cases, CBL said. The plan eliminates more than $1.6B of debt and preferred obligation and significantly reduces interest expense, slightly more than the $1.5B debt reduction in the restructuring plan announced in November.In exchange for ~$1.375B in principal amount of unsecured notes and $133M in principal amount of the secured credit facility, consenting noteholders and other noteholders will receive, in aggregate, $95M in cash, $555M of new senior secured notes, of which up to $100M, upon election of the consenting noteholder, may be received in the form of newly convertible secured notes and 89% in common equity of

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CBL reaches settlement on key issues in Chapter 11 cases