CHICAGO — The Bankruptcy Court of the Southern District of New York has confirmed a plan that will reorganize approximately $10.25 million in debt from General Growth Properties (GGP). The plan will allow for the restructuring of 87 secured mortgage loans. As part of the agreement, all undisputed claims from the creditors of these loans will be paid in full. The maturity dates of the loans will also be extended, which results in an average loan duration of approximately 6.4 years from January 1, 2010, with no loan maturing before January 2014. The interest rate for these loans will continue at the current non-default rate, with a weighted average contract interest rate of 5.31 percent and an all-in interest rate after amortization of fees paid in connection with the loans of 5.51 percent.
Confirmation of the reorganization plans for 10 properties associated with an additional $1.7 billion in secured mortgage debt has been adjourned pending the court's satisfaction of several conditions, most notably, the approval of the Class B or mezzanine holders of this debt. Discussions with these parties are ongoing.
In April, GGP filed for Chapter 11 bankruptcy protection on behalf of approximately 166 of its shopping centers and six office properties. The company currently owns or manages more than 200 regional shopping centers in 44 states totaling approximately 200 million square feet of retail space. Prior to its bankruptcy filing, it was the second largest shopping center owner in the country.
— Coleman Wood