The owner of the Southern Park Mall in Boardman, Washington Prime Group, Inc., withheld a $23.2 million interest payment that was due on Monday. 

A court filing with the U.S. Securities and Exchange Commission detailed the company has a 30-day grace period to make the interest payment. 

If the company does not make the payment, it could constitute an "event of default," which would enable the lender to seize any collateral that has been pledged and sell it to recoup the loan.

If an “event of default” should occur, the trustee or the holders of at least 25% of the outstanding Senior Notes due 2024 could accelerate the outstanding indebtedness due, according to the filing. 

Washington Prime Group has hired Kirkland & Ellis LLP as legal counsel and Guggenheim Securities LLC as an investment banker to assist the company. 

The company plans to continue to operate regularly in the meantime. 

A spokesperson for Washington Prime Group sent 21 News this statement Tuesday evening.

"Washington Prime Group’s board of directors has engaged advisors to explore strategic alternatives in order to strengthen the company’s balance sheet. We intend to continue business as usual at Washington Prime Group’s properties, where our tenants, sponsors and employees will continue operating as normal, with a focus on providing safe and enjoyable experiences for our guests."

 

21 News reached out to Washington Prime Group, Inc. Tuesday night to see if this loan has anything to do with the improvements being done at the Southern Park Mall, and company officials said it does not.