GREAT NECK, N.Y., Jan. 27 /PRNewswire-FirstCall/ -- Feldman Mall
Properties, Inc. (Pink Sheets: FMLP) announced today that it has received
notice that Inland American Real Estate Trust, Inc. ("Inland") has exercised
its rights to terminate the letter agreement that was previously announced on
November 14, 2008. The agreement with Inland provided that Feldman would
repurchase from Inland 2,000,000 shares of 6.85% Series A Cumulative
Convertible Preferred Stock (the "Series A Preferred Stock"). In exchange,
Inland would have received title to the Stratford Square Mall, located in
Bloomingdale, Illinois; Northgate Mall, located in Cincinnati, Ohio; and the
Golden Triangle Mall, located in Denton, Texas (collectively, the "Malls");
subject to the mortgage indebtedness secured by the Malls. Inland would also
have delivered to the Company $9.125 million in cash representing the amount
by which the value of the Malls, subject to the outstanding indebtedness,
exceeded the value of the Series A Preferred Stock.
As a result of the termination of the transaction with Inland, the Company
will need to raise capital from an alternative source in order to retire the
$28.5 million principal amount of unsecured fixed and floating rate junior
subordinated notes and related trust preferred securities. In addition, the
Company will need to raise sufficient additional capital or negotiate
appropriate modifications to existing debt arrangements in order to continue
to fund its ongoing operations. However the current economic and business
environment makes the achievement of any such alternative transactions
especially difficult and there can be no assurance that any such transactions
will be completed.
About Feldman Mall Properties, Inc.
The Company's common shares are quoted on Pink OTC Markets, a privately
owned company formally known as Pink Sheets, which operates Pink Quote. The
Company's portfolio, including non-owned anchor tenants, consists of six
regional malls aggregating approximately 5.8 million square feet. For more
information on Feldman Mall Properties Inc., visit the Company's website at
http://www.feldmanmall.com.
SOURCE Feldman Mall Properties, Inc.