The proposed plan contemplates the sale of all the company's properties and other assets and will be subject to shareholder approval at the annual meeting of shareholders, scheduled for later this summer, as well as agreements from some of the company's lenders.
The company owns and manages properties that are leased primarily to national and regional retail companies. The company owns a portfolio of 58 properties located in nine states that contains an aggregate of approximately 5.4 million sf of gross leasable area. The board says the plan of liquidation is the best course of action to maximize shareholder value, given the current trading price of the company's common stock.
Jeffrey Lewis, Malan's chief executive officer, tells GlobeSt.com the company's plans are to sell off the property to pay off debt.
"From the time the current board was elected, our strategic plan has always included all possible options, including liquidation," Lewis explains. "The board of directors has decided that this is the strategy to deliver to stockholders the highest and best value."
Company officials say factors influencing the board's decision include the company's debt structure, including the over-leverage at Bricktown, impediments to the redevelopment in Farmington Hills, MIproperty, the recession, and the bankruptcy filing of Kmart Corp., the company's largest tenant. A lawsuit in Farmington Hills concerns the planned redevelopment of up to 90 acres at the intersection of Orchard Lake Road, Northwestern Highway and 14 Mile Road. "We settled, and we earned claim to the property, but we lost access to the joint venture," Lewis tells GlobeSt.com.
The board has voted to decrease its size from seven directors to five at the next annual meeting. Shareholders must approve the liquidation plan before it becomes effective.Company officials say the process could take 24 months or more to complete from the date of shareholder approval.
Chicago-based Cohen Financial is advising the company on the sale of properties as part of the liquidation process.
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