Bankruptcy Court Approves GGP’s Reorganization Plan

Judge Allan Gropper of the U.S. Bankruptcy Court for the Southern District of New York has confirmed General Growth Properties Inc.'s (GGP) plan of reorganization. The company, the second-largest mall operator in the country, expects to emerge from Chapter 11 restructuring on or around Nov. 8.

Upon emergence, GGP will have a significantly improved capital structure, having secured $6.8 billion in equity commitments from Brookfield Asset Management, Fairholme Funds, Pershing Square Capital Management, Blackstone and The Teacher Retirement System of Texas, the company says. GGP has also restructured approximately $15 billion in project-level debt, renegotiating terms and extending maturity dates. All of its pre-petition creditors will be satisfied in full, GGP says.

As part of its plan of reorganization, GGP will split itself into two separate publicly traded corporations. The new GGP will focus on largely stable, income-producing shopping malls and other real estate assets, and the spinoff company, the Howard Hughes Corp., will consist of GGP's portfolio of master planned communities and other strategic real estate development opportunities.

SOURCE: General Growth Properties


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