X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-A week after seeking Chapter 11 bankruptcy protection on 158 regional shopping centers, General Growth Properties Inc. has added eight more assets to the filing. That leaves roughly 50 properties exempt from the courts.

“We filed these additional companies under chapter 11 as part of our overall plan to restructure our debt. We do not currently contemplate that additional GGP subsidiaries will file for protection, although it is possible that circumstances could change during the restructuring process,” says Adam Metz, CEO of General Growth, in a statement.

The bankruptcy filing is due to the fact that General Growth has $1.12 billion in overdue debt.

During an April 16, 2009 conference call, Metz denied suggestions that the acquisition of the Columbia, Md.-based Rouse Co. in 2004 for $7.2 billion was the main reason for the bankruptcy filing. He said up until October 2008 the company had been able to pay off its debt; but when the credit crisis hit they ended up unable to make the repayments.

It still remains to be seen how the company will be restructured by the courts. Asset sales and employee reductions are not out of the question.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.