According to this story by Tiffany Kay in Bloomberg, General Growth Properties received approval from U.S. Bankruptcy Judge Allan Gropper to restructure $10.5 billion of its debt.
“The Chapter 11 plan approved yesterday by U.S. Bankruptcy Judge Allan Gropper extends the company’s various loans, making none due before 2014, according to a company statement distributed by Business Wire. The plan covers 103 properties and 87 loan agreements. It leaves six more sets of properties, each with a number of leases, under court protection, Anup Sathy, a lawyer for the company, told the judge.”
This is a significant milestone both for GGP and the commercial real estate industry as a whole.
“Confirmation of General Growth’s plan is significant because it resolves concerns about potential bankruptcy problems at other real estate companies that have also tried to shield assets using special-purpose entities, Gropper said in court earlier yesterday.”
Those who have been quick to disparage GGP as a bankrupt company should take note that this plan calls for the company’s debt to be repaid in full. This restructuring speaks volumes about the company’s integrity and ability to perform.
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