BK Court Confirms GGP’s Plans Of Reorganization

General Growth Properties Inc. (GGP) has announced bankruptcy court confirmation of the plans of reorganization for 194 debtors owning 85 regional shopping centers, including Ala Moana in Honolulu and St. Louis Galleria, 15 office properties and 3 community centers associated with approximately $10.25 billion of secured mortgage loans.

The plans allow for the restructuring of these 87 secured mortgage loans and the payment in full of all undisputed claims of creditors. Key provisions of the plans include maturity date extensions resulting in an average loan duration of approximately 6.4 years from Jan. 1, 2010, with no loan maturing prior to January 2014, and continuation of interest on the loans at the current non-default rate.

Confirmation of the plans of reorganization for 26 additional debtors owning 10 properties associated with an additional $1.7 billion of secured mortgage loans has been adjourned pending satisfaction of various conditions, including receipt of the approval of the Class B holders or mezzanine holders of such secured mortgage loans. Discussions with the Class B note holders and mezzanine holders are ongoing, GGP says.

The company's president and chief operating officer, Thomas H. Nolan Jr., calls the bankruptcy court's confirmation of the plans a "monumental step towards completion of GGP's overall corporate restructuring."

"As a result of these plans, completed just eight months after our Chapter 11 filing, we have created the foundation for the long-term capital structure for GGP and the basis for emerging our remaining debtors from bankruptcy," Nolan adds. "We are hopeful that we will reach agreements with our remaining secured mortgage lenders expeditiously."

A list of the properties covered by court-confirmed plans will be posted on www.ggp.com.

SOURCE: General Growth Properties


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