Nov 19, 2009
General Growth reaches agreement with lenders
Nov 19, 2009
NEW YORK, Nov 19 (Reuters) - General Growth Properties (GGWPQ.PK) expects 170 of its corporate entities to exit bankruptcy by the end of this year after reaching an agreement with creditors to extend loans, the mall operator told U.S. Bankruptcy Court in New York on Thursday 19 November.
South Street Seaport, New York - one of the malls owned by General Growth Properties
The company reached a deal with representatives of 70 loans -- ranging in size from tens of millions to more than $1 billion -- for extensions averaging six years, it said.
General Growth said its concessions include increased amortization on loans and additional reserves. A tentative confirmation hearing on the plan is set for Dec. 14.
The company, the second-largest U.S. mall owner and biggest real estate failure in U.S. history, has underscored the difficulties in the U.S. commercial real estate market, where there are now few sources of available funding amid the credit crisis.
The retail real estate sector has been hit particularly hard due to falling rents and rising vacancies because of the U.S. recession and consumer pullback in spending.
Chicago-based General Growth owns or controls more than 200 regional malls, including valuable properties like South Street Seaport in New York, Fashion Show in Las Vegas and Faneuil Hall Marketplace in Boston. (Reporting by Nick Zieminski and Ilaina Jonas; Editing by Lisa Von Ahn)
© Thomson Reuters 2023 All rights reserved.