Owners of McAllen's Palms Crossing shopping plaza file for bankruptcy
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The owner of the Palms Crossing shopping plaza in McAllen has filed for Chapter 11 bankruptcy protection in order to restructure their debt in a federal bankruptcy court in Houston.
Washington Prime Group, the company that owns Palms Crossing, filed for bankruptcy last week.
In a statement, the property owner told Channel 5 News that the pandemic had created significant challenges for many consumer-facing companies, including Washington Prime Group.
They say the company determined filing for bankruptcy was the most effective next step to resolve the company's outstanding debt of up to $3.5 billion, according to court documents.
The company has assets of around $4 billion.
In a statement, McAllen City Manager Roel “Roy” Rodriguez said there will be no impact to the Palms Crossing shopping district.
The owners of Palms Crossing will consider a variety of options in order to restructure its debt.
Meanwhile, its business as usual.
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