PEI - Some PREIT lenders allege events of default

Pennsylvania REIT (PEI) received letters from lenders regarding alleged events of default related to its seven-year term loan agreement, its restated revolving/term loan credit agreement, and its bridge credit agreement.It also received a letter from consenting lenders under its restructuring support agreement alleging that the company's failure to enter Chapter 11 cases on or before Oct. 18, 2020 constituted a breach of its obligations under the RSA.The reservation letter in respect of each credit agreement states that interest will accrue on the outstanding principal balance of the borrower’s loans at the increased post-default rate beginning on Oct. 19, 2020.PEI disputes the lenders' characterization of the situation and contends that no breach of the RSA or event of default under any of the credit agreements has occurred.The REIT is in good-faith talks with its lenders in efforts to  extend the date PEI would be required to start any potential Chapter 11

For further details see:

Some PREIT lenders allege events of default