Retail REITs CBL & Associates Properties and PREIT have filed voluntary bankruptcy. Both REITs announced plans to recapitalize and restructure debt as part of the bankruptcy process.

Chattanooga, Tennessee-based CBL & Associates Properties' bankruptcy isn't a total surprise. In recent months, the firm had warned stockholders that it would file for bankruptcy if it could not secure debt relief with its lenders. During the pandemic, stock fell 22% below its premarket price, and it currently owes $4.5 billion to creditors. In addition, several of CBL's tenants have filed for bankruptcy this year, including J.C. Penney Co. and Ann Taylor's parent company.

In its bankruptcy filing, CBL attempted to arrange a debt-for-equity swap. The deal would give unsecured bondholders a 90% ownership interest in CBL in exchange for $1.4 billion in debt. The company has said that the ongoing bankruptcy filling will not disrupt business operations.