General Growth Expects Remaining Debt Restructured “In Next Few Weeks” $$

• Posted by ToddSullivan
• on January 25th, 2010

As expected, and continued good news..

General Growth Properties, Inc. (“GGP” or the “Company”) today announced its joint venture subsidiary, Carolina Place L.L.C., has closed on an extension of its $155 million mortgage loan originally scheduled to mature this month. The four year extension is at the current contract rate of interest, 4.5975%. The all-in-interest rate after amortization of fees to be paid in connection with this loan is 5.11%. Carolina Place is a 1.3 million square foot regional shopping center located in Pineville, North Carolina. This joint venture subsidiary was not one of the GGP entities that sought bankruptcy court protection.

GGP also announced completion of the restructuring of 74 secured mortgage loans aggregating approximately $9.4 billion. As a result, 180 GGP subsidiary debtors owning 96 properties are no longer in bankruptcy. This final step follows the December 2009 Bankruptcy Court approval (also called confirmation) of the plans of reorganization that permitted the restructuring of these loans and the emergence from bankruptcy for the associated subsidiaries and properties.

Restructuring of the remaining 16 loans aggregating approximately $2.1 billion approved by the Bankruptcy Court in December 2009 and January 2010 is expected to be completed in the ordinary course during the next few weeks. When these restructured loans are complete, all of the plans of reorganization previously approved by the Bankruptcy Court will also be fully implemented. As a result, when complete, 36 additional subsidiary debtors associated with 16 properties will no longer be in bankruptcy.

A complete list of subsidiary debtors and properties is found at:

http://www.ggp.com/company/Default.aspx?id=111

http://www.ggp.com/company/Default.aspx?id=112

It is now just a matter of time before the remaining secured debt holders refinance their debt either on their own or at the direction of the Judge now that this blueprint had been successful. Since, under Chapter 11 all secure lender must be “treated equally”, no material deviation from the already approved and implemented plans will occur.

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