Destiny USA Mall in Syracuse is facing financial difficulties after its parent company, Pyramid Management Group, defaulted on a $300 million mortgage. The company failed to secure an extension for the loan’s maturity date, which was due last June. This led the lender to cancel a forbearance agreement, making all outstanding principal and unpaid interest immediately due.
According to CNY Central, Destiny USA was unable to make a $38.9 million payment required to qualify for a one-year extension of the loan. As a result, the lender terminated the forbearance agreement, which typically prevents the lender from pursuing default remedies if the borrower agrees to pay the loan and bring it current.
The Kroll Bond Rating Agency (KBRA) reported that Destiny USA had initially taken out a $440 million loan, with a five-year maturity date in 2019 and a forbearance agreement in place until June 2024. However, the mall’s current value is estimated at $65.3 million, significantly lower than the outstanding loans…