CHICAGO — Chicago-based General Growth Properties (GGP), the second largest shopping center owner in the country, has filed for Chapter 11 bankruptcy protection in the Southern District of New York. Approximately 158 properties owned by GGP and its subsidiaries are included in the Chapter 11 protection. Some subsidiaries, including the company’s third-party management business and GGP’s joint ventures, were not included in the filing. GGP currently owns more than 200 shopping centers in 44 states, with a portfolio totaling approximately 200 million square feet.
The company will continue normal day-to-day operations at all of its’ holdings. It has already received a commitment for a debtor-in-possession credit facility of approximately $375 million from Pershing Square Capital Management that will provide a source of funds for the company as it proceeds through its restructuring.
“Our core business remains sound and is performing well with stable cash flows,” said Adam Metz, CEO of the company, in a prepared statement. “We believe that Chapter 11 is the best process for restructuring maturing mortgage loans, reducing the company’s corporate debt, and establishing a sustainable, long-term capital structure for the company.
He added, “While we have worked tirelessly in the past several months to address our maturing debts, the collapse of the credit markets has made it impossible for us to refinance maturing debt outside of Chapter 11.”
— Coleman Wood