The parent company of two premier retail properties in Cheyenne has filed a voluntary Chapter 11 bankruptcy petition.
Tennessee-based CBL & Associates, which owns Frontier Mall and Frontier Square, announced Monday it was seeking reorganization as part of a plan to restructure existing debt.
The company said in a release they intend to continue normal operations at the Cheyenne locations and at another 100 or so retail properties across the U.S.
According to a report by Bloomberg, the filing in U.S. Bankruptcy Court in Houston, Texas says the company took the step due in part to a conflict with Wells Fargo, which holds and refuses to release about $1.1 billion in collateral CBL intended to use as part of a restructuring plan that was announced in August.
In addition, some of CBL’s biggest renters have filed bankruptcy this year with plans to close stores, in part because of the fallout of the COVID pandemic, and the company had previously warned investors there was trouble on the horizon as tenants were not paying their leases.