Owner of McAllen's Palms Crossing shopping plaza files for bankruptcy
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.