General Growth Properties has asked Judge Allan Gropper to grant a six month extension to file a plan for exiting from bankruptcy. According to this post from Todd Sullivan’s Value Plays, the company needs more time due to the "complex nature" of its bankruptcy filing.
“This was not unexpected as General Growth had initially said when it filed it had hope to file a plan "by the end of the year". If you follow bankruptcies, you know that those initial deadlines are rarely met due to the complex nature of the process. But, having the clarity is a good thing. It would be shocking were this extension not granted. The only way I can see it done is if Gropper decides to consolidate the filings and just cram down all debt. In that scenario (unlikely), the reorg plan becomes very simple overnight.”
In the meantime, the company is continuing to move forward with its Town Center redevelopment plans.
And most GGP employees and managers are rushing out to buy GMC cars and trucks...right?
ReplyDeleteTo say that "the company 'needs' more time due to the 'complex nature' of its bankruptcy filing" seems inaccurate. While GGP itself created complexity both by creating a web of SPEs while accumulating properties, partners in those properties, and debt, and by now involving not just the troubled SPEs, but also some of their very solvent (and assumed-by-some bankruptcy-remote) SPEs, the extension is a potential outcome, but the judge could help simplify matters in short order and a pure cram down isn't the only possible alternative.
ReplyDeletePop quiz: whose been helping to keep their creditors afloat in the meantime?
Sorry WB, not related to this post, but over here in "Columbicott City" they put a small (yet tall) windmill next to the new apartment building Ellicott Gardens. Thought it would make an interesting STW. Not sure what it will be used for, maybe you can ask around and enlighten us.
ReplyDeleteAnon 10:17
ReplyDeleteHow's that for readership responsiveness?
-wb
WB! Great response! I was also the anon who asked about the gas station a few weeks back!
ReplyDelete-Anon 10:17am