GGP Seeks Bankruptcy Court Approval Of Brookfield-Led Bid

Posted by Orb Staff on May 04, 2010 No Comments
Categories : Commercial Mortgage

General Growth Properties Inc. (GGP) says it will seek bankruptcy court approval of bidding procedures and compensation for the financial commitments to be provided pursuant to a revised $6.55 billion equity investment and $2 billion capital backstop offer from Brookfield Asset Management, Pershing Square Capital Management and Fairholme Funds.

The investment offer remains subject to higher and better offers pursuant to a bidding process that is subject to approval by the bankruptcy court. GGP will continue to consider competitive proposals and expects to select its plan for emergence from bankruptcy in early July.

"We are very pleased to recommend the Brookfield-led proposal as the transaction that offers the best opportunity at this time to maximize long-term value for stockholders while ensuring full payment to creditors," says Adam Metz, CEO of GGP. "With the revised proposal, we have now secured commitments for all financing needed to emerge from bankruptcy."

Under the terms of the amended agreements, GGP expects to emerge from Chapter 11 as two separate companies: General Growth Properties ("New GGP"), which will own traditional shopping mall properties, and General Growth Opportunities (GGO), which will own a "diverse portfolio of assets with attractive longer-term growth prospects."

SOURCE: General Growth Properties

Register here to receive our Latest Headlines email newsletter




Leave a Comment