General Growth files $8.5B restructuring plan

TRD MIAMI /
Jul.July 13, 2010 01:30 PM

Mizner Park

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.

Per the filing, General Growth plans to exit Chapter 11 bankruptcy protection in October after splitting into two separate, publicly traded companies: a new General Growth Properties and Spinco.

“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

 

Related Articles

arrow_forward_ios
Brookfield Property Group’s Brian Kingston and 3400 Northwest 74th Avenue (Credit: Google Maps)

Brookfield picks up more industrial properties near MIA for $83M

Jeffrey Soffer and the Diplomat Beach Resort (Credit: Getty Images)

Jeffrey Soffer in talks to buy 1,000-room Diplomat Beach Resort for under $1B: report

7500 Northwest 35th Terrace and Brookfield Asset Management CEO Bruce Flatt

Brookfield affiliate picks up tire distribution center for $20M

Diplomat Beach Resort at at 3555 South Ocean Drive

Brookfield’s Hollywood Diplomat scores $168M refi

Mayfair Hotel & Spa and Brookfield CEO Bruce Flatt

Brookfield buys Mayfair hotel in Coconut Grove for $40M-plus

CalSTRS CEO Jack Ehnes and Fairfield Residential apartments

CalSTRS to acquire Fairfield Residential from Brookfield: report

Troubled K. Hovnanian sells part of Coral Springs community to Brookfield

One of South Florida’s largest resorts just hit the market, asking as much as $1B

arrow_forward_ios