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Holder of $1.5B in General Growth Debt: "In All Cases Mortgages Will Be Renogotiated"

They clearly cannot speak for other lenders but there is a clear trend emerging here….

Here is the very interesting disclosure:

The 2008 Facility Borrowers are, in the aggregate, cash flow positive by a significant amount after debt service and operating expenses (including agreed management fees payable to other Debtors and affiliates). On information and belief, the same is true of most of the SPE Debtors. In all of these cases, the mortgage loan will be renegotiated and the remaining creditors will be paid in full.

Full filing:
SPE GGP

Now this is far from a victory lap. A lender “willing to negotiate” a simple one year extension at a hefty interest rate really does not do anything for the cause. A minimum of three years is needed and five would be preferable. BUT, it is good to see that for the most part, heals are not being dug in and lender recognize owning the properties is not in their best interest AND there is no market to liquidate them. That only leave maturity renogotiation.

See posts on other lender willing to extend maturities….here and here


Disclosure (“none” means no position):Long GGWPQ