I have to believe that this is partially in response to the recent events of this week.
— General Growth Properties, Inc. today announced the next steps in the restructuring process following Tuesday’s announcement of the confirmation of plans of reorganization for 194 GGP subsidiary debtors owning 103 properties associated with approximately $10.25 billion of secured mortgage loans and the pending plans of reorganization for 26 additional debtors owning 10 properties associated with an additional $1.7 billion of secured mortgage loans. As previously announced, confirmation of these additional plans is subject to satisfaction of various conditions, including receipt of the approval of the Class B holders or mezzanine holders of such secured mortgage loans.
GGP is continuing to pursue a prompt resolution of approximately $3 billion of secured property debt remaining to be restructured. Concurrently, the Board of Directors and management are evaluating alternatives to reduce overall leverage and raise the capital necessary to emerge from bankruptcy in 2010. Financing alternatives include a public offering of GGP equity. In addition, the Board of Directors and management are considering all indications of interest in the Company.
“The confirmation of the plans of reorganization and the extension of mortgage maturities create the foundation for GGP to move forward to create a sustainable stand-alone capital structure which provides the basis of comparison for other strategic alternatives,” said Adam Metz, chief executive officer. “The GGP Board is committed to maximizing value for all stakeholders and will choose the alternative that best achieves this objective.”
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