Cbl Restructuring Support Agreement

All new securities to be issued in connection with restructuring transactions may not be registered under the Securities Act of 1933 as amended (Securities Act) or other state securities laws, but may be issued pursuant to a waiver of such registration in U.S. bankruptcy law. These new securities may not be offered or sold in the United States without registration or any applicable exemption from the registration requirements of the Securities Act and applicable national securities laws. This press release does not constitute an offer to sell or buy, nor is this press release an invitation to issue an offer to sell or buy any securities referred to, nor is this press release an invitation to agree to or vote for the adoption of a Chapter 11 plan. Any request or offer is made only on the basis of a confidential offer memorandum and a disclosure statement and only to persons authorized by the legislation in force. The Chapter 11 filing, expected in a certain sense, also appears to be a reaction by the company to the short-circuit measures taken by the company`s bank lenders to enforce their alleged rights under the company`s first right of pledge. According to the company`s announcement on 2 CEO Stephen Lebovitz said: “After months of discussions and reflections on a number of alternatives, CBL`s management and board of directors strongly believe that the implementation of the global restructuring, as described in the RSA by a voluntary Chapter 11 insolvency application, will offer CBL the best plan to become a stronger and more stable company. “Reaching this agreement with our bondholders is an important milestone for CBL,” said Stephen D. Lebovitz, Chief Executive Officer of CBL. “The agreement will significantly improve our balance sheet by reducing debt levels and increasing net cash flows, simplifying our capital structure and providing increased financial flexibility in the future. However, according to the action, Wells Fargo asserts, immediately after receiving a restructuring term sheet proposed by the ad hoc bond group [late October], which appears to have insulted bank lenders, to exercise a number of remedies it claims to hold, including voting rights, in order to exercise control of [real estate used as collateral under the credit facility] and to exercise the resulting rent.” “After months of discussions and reflections on a number of alternatives, CBL`s management and board of directors strongly believe that the implementation of the global restructuring, as outlined in the RSA through a Voluntary Chapter 11 insolvency application, will provide CBL with the best plan to act as a stronger and more stable company,” said Stephen D. Lebovitz, Chief Executive Officer of CBL. “With a total of approximately $1.5 billion in unsecured debt and preferential commitments and a significant increase in net cash flow, CBL will be better positioned to implement our strategies and grow as a stable and profitable business.” On August 18, CBL entered into a Restructuring Support Agreement (“RSA”) with a group representing the majority of our bondholders that will allow us to significantly strengthen our balance sheet and organization.