General Growth Files for Plan of Reorganization
General Growth Properties said it has filed for a plan of reorganization with a U.S. court and confirmed it is looking to emerge from bankruptcy protection in October with less debt in its balance sheet.
The second largest U.S. mall owner said it has successfully restructured about $15 billion in project-level debt which will allow it to satisfy its debt and other claims in full and implement a recapitalization with $7 billion to $8 billion of new capital.
After emerging out of Chapter 11 protection, General Growth will split itself into two separate publicly traded companies and current shareholders will receive common stock in both companies.
On Monday, General Growth said it won a $500 million equity investment from Teacher Retirement System of Texas to help it emerge from bankruptcy protection.
Affilates of Brookfield Asset Management, Fairholme Capital Management and Pershing Square Capital Management, which have committed to provide $8.55 billion in capital, the company said.
The New General Growth will remain the second-largest shopping mall owner and operator in the country, with more than 180 properties in 43 states.