General Growth Properties went before U.S. Bankruptcy Judge Allan Gropper today to request a six month extension to exclusively file their plan for reorganizing and exiting bankruptcy. The judge gave them four months. According to this story by Tiffany Kary in BuisinessWeek, the judge “said the company can have until July 15, which should be enough time to file a so-called disclosure statement outlining a reorganization.”
This can still be seen as victory for GGP.
“He rejected creditors’ request to limit General Growth’s control to just 45 days, and said the control wouldn’t stop the company from evaluating bids from Simon Property or other interested parties.”
This extension gives GGP time to work out the complexities of the deal with Brookfield Asset Management that will result in the company splitting in two.
“The judge’s decision to limit exclusivity to four months is “an expected outcome,” said Jim Sullivan, an analyst with Green Street Advisors in Newport Beach, California. “It’s giving them enough time to work the process, but he’s not giving them the six months because he doesn’t think they need it.”
Simon is not out of the running yet though. They could also use this time to up the ante and perhaps bring in another partner in their effort to acquire GGP.
In other GGP news today, the company also applied to have their shares relisted on the New York Stock Exchange. The stock was delisted by the NYSE a year ago went the company sought protection of the bankruptcy courts. The stock has been traded on the over the counter since then under the symbol GGWPQ. Today the shares closed at $13.49.
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