General Growth Properties files for reorganization
Business Law
General Growth Properties Inc. said Wednesday that it has filed its reorganization plan, and its lenders have agreed to restructure about $9.7 billion in shopping mall mortgage loans, more than previously planned.
Last month the mall operator, which earlier this year filed the largest U.S. real estate bankruptcy case in history, said its lenders had agreed to restructure some $8.9 billion in loans.
The real estate investment trust and about 166 regional shopping centers and subsidiaries filed for Chapter 11 protection in April. The company had about $27 billion in debt piled up at the time.
General Growth fell victim to an aggressive expansion during the height of the real estate boom and was unable to service it when credit markets dried up during last year's financial crisis.
General Growth, based in Chicago, is the second-largest U.S. mall operator. The shopping mall loans that are being restructured cover 92 regional shopping centers, office properties, community centers and related subsidiaries.
The company's reorganization plan includes full payment of all undisputed claims against emerging debtors for pre-petition goods and services.
General Growth said the Bankruptcy Court of the Southern District of New York is set to confirm its reorganization plan on Dec. 15. If the company obtains all of the necessary approvals for its plan and meets the necessary conditions, General Growth anticipates the regional shopping centers, office properties community centers and other subsidiaries associated with the loans will be out of bankruptcy before year's end.
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