CHICAGO-General Growth Properties Inc. has filed a $6.5-billion reorganization plan with the US Bankruptcy Court for the Southern District of New York that includes funds provided by Brookfield Asset Management, Pershing Square Capital Management and Fairholme Capital Management. Under the terms of the agreements, Brookfield will provide $2.6 billion, and Pershing Square and Fairholme will commit $3.9 billion of new equity capital at a value of $15 per share to facilitate GGP’s emergence from bankruptcy. In addition, the trust will issue warrants for 120 million shares exercisable at $15 per share.

The plan would create two companies, General Growth Properties (GGP), which would have the higher-quality assets, and General Growth Opportunities (GGO), which will own a diverse portfolio of real estate assets, including the company’s master planned communities and properties such as Ward Centers in Honolulu and South Street Seaport in New York City. The proposed plan provides unsecured creditors with PAR plus accrued interest and, before taking into account the warrants, the existing shareholders with approximately 34% of the equity of reorganized GGP and 86% of the equity of GGO.

Company officials said in a late Wednesday statement that the combined equity capital, along with its anticipated new $1.5-billion debt issuance–or the reinstatement of a comparable amount of existing debt–would, if approved, deliver substantially all of the cash required to fulfill the capital needs in connection with its emergence from bankruptcy.

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