General Growth Nears End of Bankruptcy

The company could exit bankruptcy protection by the end of the year.

From General Growth:

CHICAGO, December 2, 2009 — GENERAL GROWTH PROPERTIES, INC. ("GGP") today announced the filing of the plan of reorganization and related disclosure statement with the Bankruptcy Court in the Southern District of New York for the 92 regional shopping centers, office properties, community centers and related subsidiaries associated with approximately $9.7 billion of secured mortgage loans. This amount exceeds the previously announced agreements in principal to restructure $8.9 billion of mortgage loans, as GGP has reached additional consensual agreements in principal with certain secured mortgage lenders since the prior announcement on November 19, 2009.

Confirmation of the plan of reorganization is currently scheduled for December 15, 2009. The plan of reorganization 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 reorganization 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 centers, office properties, community centers and other subsidiaries associated with these secured mortgage loans will emerge from bankruptcy prior to the end of 2009.

“We are extremely pleased to take this important step of filing the plan of reorganization for these debtors,” said Thomas H. Nolan, Jr., president and chief operating officer of GGP. “Our successful completion of agreements in principal with additional mortgage lenders shows our continued progress. We will continue to work with our other secured mortgage lenders and are hopeful that we will reach additional consensual agreements quickly.”