General Growth's Fresh Funding Lifts 96 Properties Out of Bankruptcy Protection With 16 Left to Save
(CHICAGO, IL) -- Good news today from General Growth Properties Inc., (PINK OTCBB:GGWPQ) the nation's second largest shopping center developer-owner after Simon Property Group.
The Chicago-based owner and manager of more than 200 regional shopping malls in 43 states announced it has completed the restructuring of 74 secured mortgage loans aggregating about $9.4 billion.
As a result, 180 GGP subsidiary debtors owning 96 properties are no longer in bankruptcy. (Please see related Real Estate Channel postings):
- General Growth's Chapter 11 Filing Called Largest in U.S. Retail Bankruptcy History, April 17, 2009
- General Growth Properties Stock Price Rise Puzzles Wall Street, April 7, 2009
- Fourth General Growth Properties Mall Seized, March 23, 2009
- General Growth Wins Breather but Hedge Fund Manager Predicts Bankruptcy Filing Coming, March 17, 2009
- Clock Ticking on Bankruptcy-Saving Deal for General Growth Properties and Subsidiary, March 12, 2009
- General Growth Properties' Piggy Bank is Low as Debt Piles Up, Feb. 24, 2009
- General Growth Properties Dumps 3 Trophy Retail Centers in Public Marketplace, Dec. 22, 2008
Restructuring of the remaining 16 loans totaling about $2.1 billion, approved by the Bankruptcy Court in December 2009 and January 2010, is expected to be completed in the ordinary course during the next few weeks.
When these restructured loans are complete, all of the plans of reorganization previously approved by the Bankruptcy Court will also be fully completed, the company states.
As a result, when complete, 36 additional subsidiary debtors associated with the 16 properties will no longer be in bankruptcy.
General Growth won U.S. Bankruptcy Court approval Dec. 14 to restructure about $10.25 billion in mortgages on its nationwide portfolio of retail and office properties.
The company's portfolio totals 200 million square feet and more than 24,000 stores nationwide
General Growth's most recent restructuring came today.
its joint venture subsidiary, Carolina Place L.L.C., closed on an extension of its $155 million mortgage loan originally scheduled to mature this month.
The four year extension is at the current contract rate of interest, 4.5975%. The all-in-interest rate after amortization of fees to be paid in connection with this loan is 5.11%.
Carolina Place is a 1.3 million square foot regional shopping center located in Pineville, NC. This joint venture subsidiary was not one of the GGP entities that sought bankruptcy court protection.