JCP Investment Partnership LP and its affiliates, in a joint ownership filing, said that Wheeler Real Estate Investment Trust Inc. failed to maintain its required asset coverage ratio.
If the shopping center REIT does not cure its failure to maintain the required asset coverage by June 8, the investors said they would consider "further action," which could include litigation.
The shareholders further claim that the certificate of correction to the asset coverage provision that Wheeler filed on May 3 is invalid, and was meant to circumvent the REIT's obligations under the provision, which include the mandatory redemption of certain preferred shares.
The investors jointly own 258,548 shares, or roughly 7.2%, of the trust's 3,600,636 outstanding shares as of March 31.
