General Growth Properties, the bankrupt owner of U.S. shopping malls, including the South Street Seaport, has filed its proposed reorganization plan with the U.S. Bankruptcy Court for the Southern District of New York, the company announced today.
“New GGP will remain the second-largest shopping mall owner and
operator in the country…and will focus on largely stable,
income-producing shopping malls and other real estate assets” CEO Adam
Metz said in a statement. “At the same time, Spinco will hold a
diversified portfolio of properties with little debt and with near-,
medium- and long-term development opportunities, including GGP’s master
planned community segment and a series of mixed-use and mall
development projects in premier locations,” he said.
Shareholders will receive common stock in both companies,
which will be capitalized with a combined up to $8.55 billion infusion
from Brookfield Asset Management,
Fairholme Capital Management and Pershing Square Capital Management.
The Teacher Retirement System of Texas has also invested $550 million
in shares of the new General Growth Properties common stock at $10.25
per share, the company said. General Growth soundly rejected a buyout
offer from competitor Simon Property Group earlier this year.
General Growth said it will satisfy its debt and other claims in full
under the plan. A bankruptcy court hearing on the plan is slated for
Aug. 19. TRD