As General Growth Properties continues to pursue its approval of ZRA 113 for the redevelopment of Columbia’s Town Center, it also continues to navigate its way through the bankruptcy courts.
So what is going on with that?
Last Friday, Jennifer Dawson reported in the Houston Business Journal that GGP had backed out of plans to sell its stake in the master planned community of Bridgeland, Texas. This is the clearest indication to date that the company intends to remain committed to developing master planned communities.
According to this story by Brian McMorris on the Seeking Alpha blog the next key event for the company will occur before the end of this month.
“The other big news the past week was the decision of Judge Gropper, who is overseeing the bankruptcy proceedings, to make a decision by the end of June or thereabouts regarding whether or not General Growth is even entitled to a bankruptcy that includes its malls.
In the most interesting turn of this situation, the parent brought a number of mall partnerships (SPEs) that were financed by securitized debt, under the corporate umbrella. The debt holders cried foul because they thought they were immune to the parent's bankruptcy. Most of the debt holders had refused to negotiate to extend loans with GGP. My thinking is they were trying to take advantage of the credit crisis and had plans to strip away the assets without compensating General Growth.”