General Growth To File Chapter 11 Plan On 9 July

General Growth Properties Inc., the US second-largest mall owner, announced it expects to file its Chapter 11 reorganisation plan on or around 9 July, according to a statement. The company also filed a request with a US bankruptcy court to extend its exclusive right to file a plan to 18 October, and to extend its exclusive period to solicit acceptances of any plan of reorganisation through 18 October.

The current exclusivity periods are scheduled to expire on 15 July 2010 and 15 September 2010, respectively. General Growth said the requested extension is part of a strategy to “maximise value upon emergence” from bankruptcy, allowing it to “explore all financing emergence options available to it” and “complement or replace existing financing commitments” according to the statement.

In April 2009, General Growth filed the largest US real estate bankruptcy in history under a $27bn debt load amassed following acquisitions.

 Both Simon Property Group and a group led by Brookfield Asset Management tried to take over General Growth.

But, according to Bloomberg, Simon withdrew its offer in early May and a bankruptcy judge approved a plan for the mall owner to emerge with investments from Brookfield and its partners.

SOURCE: Financier.com