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.
Great news! GGP has worked so hard for Columbia and her stakeholders over the past 4 years, so I am very happy for them. These are historic times, and I look forward to the day when Downtown Columbia becomes the vibrant, walkable and connected city it was always meant to be.
ReplyDeleteHUM
ReplyDeleteI wonder what would have happened to General Motors if our reorganization laws had been followed instead of the federal and union piracy that occurred.
Could the bondholders in Illinois have saved their retirement funds instead of taking 10 cents on the dollar. I guess this is change we can believe in.
Thank goodness GGP was too small and was ignored by the Obama administration.
HH