It’s official, General Growth Properties has emerged from bankruptcy. Accrding to this story in The Sun “the second-largest U.S. mall operator, said it has emerged from bankruptcy, 11/2 years after becoming the biggest U.S. real estate company to seek Chapter 11 protection.”
In contrast to most corporate bankruptcies, it appears that all of GGP’s creditors will also be made whole.
“Creditors were paid in full, and equity investors who often get wiped out instead obtained a "substantial" recovery on their claims, General Growth said. Both are unusual.”
The company is even expected to begin paying a dividend in the first quarter next year.
As part of the reorganization, GGP has spun off most of the assets in their Master Planned Communities division to a new entity called Howard Hughes Corporation. According to this story in Rueters “shareholders of the old General Growth received common stock in the new company and in Howard Hughes. Shares of the new General Growth and Howard Hughes began trading on Wednesday.”
