Struggling General Growth Properties files for reorganisation

    Struggling General Growth Properties files for reorganisation

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    , Inc. (GGP), one of the USA’s largest REITs, has announced the filing of the plan of reorganisation and related disclosure statement with the Court in the Southern District of New York for the 92 regional shopping centres, office properties, community centers and related subsidiaries associated with approximately $9.7 billion of secured mortgage loans.

    The plan of reorganisation provides that all undisputed claims against the emerging debtors for pre-petition goods and services will be paid in full. Effectiveness of the plan of reorganisation and emergence from bankruptcy for the debtors associated with these secured mortgage loans are subject to various conditions and approvals, including completion of definitive documentation and approval of the Bankruptcy Court. In addition, certain of the agreements remain subject to the approval of the Class B note holders or mezzanine holders. If these conditions are satisfied and such approvals are obtained, the regional shopping centres, office properties, community centres and other subsidiaries associated with these secured mortgage loans will emerge from bankruptcy prior to the end of 2009.

    GGP currently has ownership interest in, or management responsibility for, over 200 regional shopping malls in 44 U.S. states, as well as ownership in planned community developments and commercial office buildings. The company’s portfolio totals approximately 200 million square feet of retail space and includes over 24,000 retail stores nationwide. In April this year, the company filed the biggest bankruptcy in U.S. history after amassing $27 billion in debt during an acquisition spree that turned it into the second-largest shopping mall owner.

    — IndiaRetailing Bureau