Wednesday morning, the local mall REIT had announced a roughly $8.4 billion recapitalization plan with Toronto-based Brookfield. The plan includes Brookfield investing $2.6 billion, GGP raising an additional $2.5 billion in cash through a combination of the issuance of new corporate level indebtedness and about $1 billion in asset sales, and the company raising an additional $3.3 billion in equity capital.

The GGP board had already dismissed an earlier proposal by Simon for a $10 billion buyout, which would provide much quicker and safer cash to creditors, said the Indianapolis-based mall giant in a statement Wednesday night.

"General Growth's proposed recapitalization amounts to a risky equity play on the backs of its unsecured creditors," according to Simon's recent statement. "While continuing to block the immediate and certain 100% cash recovery provided by Simon's offer, General Growth has preempted its own self-proclaimed 'process' in favor of a highly speculative and risky plan to attempt to raise $5.8 billion of new capital in today's uncertain markets--including $3.3 billion of dilutive new equity, $1 billion in asset sales and $1.5 billion in new debt--on top of the approximately $28 billion it already owes. Simon is providing $10 billion of real value--$3 billion to shareholders as well as $7 billion to creditors--as compared to a complex piece of financial engineering that is so highly conditional as to be illusory."

General Growth has stated it prefers to stay solvent rather than accept a takeover. Though a GGP shareholder has already launched a lawsuit regarding the rejection of Simon, it's becoming clear that the Chicago executives know there are more options coming. To show that point, the Wall Street Journal reported that it has learned that Westfield is also considering lodging a bid for GGP. See that story here.