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Simon rival General Growth exits Chapter 11

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Shopping mall owner General Growth Properties Inc. on Tuesday emerged from Chapter 11 bankruptcy protection, bringing to a close the largest real estate bankruptcy case in U.S. history.

The Chicago-based company said it has completed the final steps of its financial restructuring, 19 months after it turned to the courts under the weight of nearly $28 billion in debt.

General Growth exits bankruptcy with more than 183 regional malls in 43 states — a retail portfolio second only to Indianapolis-based Simon Property Group Inc., which failed in its bid to scoop up its rival earlier this year.

"Today marks the successful end of one chapter in (General Growth's) history and the beginning of another," CEO Adam Metz said in a statement.

During the bankruptcy process, the company lined up $6.8 billion in equity commitments and restructured and extended $15 billion in debt. It also worked out a way to pay all creditors in full — a rare outcome in bankruptcy cases.

As part of the restructuring, General Growth split into two separate companies: General Growth Properties and The Howard Hughes Corp., which owns General Growth's portfolio of planned communities and other real estate development opportunities. Pershing Square Capital Management CEO William Ackman will become chairman of the Hughes spinoff.

Some of its properties include Bridgewater Commons in N.J., South Street Seaport in New York City and Faneuil Hall Marketplace in Boston.

The company also said Wednesday it launched a public stock offering of 135 million shares, worth nearly $2.35 billion based on Tuesday's closing stock price of $17.39. General Growth plans to use the proceeds to buy back shares issued to Brookfield Asset Management, Fairholme Funds Inc., Pershing Square Capital Management and Teacher Retirement System of Texas for the billions in capital they put up as part of the reorganization.

General Growth's financing agreement with that investor group had included a provision that gave the mall owner the option to replace up to $2.15 billion in capital with the proceeds of equity issued at more favorable price. Any additional proceeds from the stock offering will be used for general corporate purposes.

Goldman, Sachs & Co. and Deutsche Bank Securities are serving as joint global coordinators for the offering. The underwriters will have an option to purchase an additional 20.25 million shares in the event demand exceeds inital supply.

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  1. Now if he'd just stay there...

  2. Daniel - what about the many US citizens who do NOT follow what the Bible teaches? The Hindus, Jews, Muslims and others who are all American citizens entitled to all rights as Americans?? This issue has NOTHING to do with "What the Bible says..." Keep all Churches separate from State! Pence's ongoing idiocy continues to make Indiana look like a backwards, homophobic state in the eyes of our nation. Can't we move on to bigger issues - like educating our kids?

  3. 1. IBJ should link to the referenced report. We are in the age of electronic media...not sharing information is lazy. Here is a link http://www.in.gov/gov/files/Blue_Ribbon_Panel_Report_July_9_2014.pdf 2. The article should provide more clarity about the make-up of this panel. The commenters are making this item out to be partisan, it does not appear the panel is partisan. Here is a list of the panel which appears to be balanced with different SME to add different perspectives http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=138116?formation_id=189603 3. It suggests a by-pass, I do not see where this report suggests another "loop". 4. Henry, based on your kneejerk reaction, we would be better off if you moved to another state unless your post was meant as sarcasm in which case I say Well Done. 5. The article and report actually indicates need to improve rail and port infrastructure in direct contradiction to Shayla commentary. Specifically, recommendation is to consider passenger rail projects... 6. People have a voice with their elected officials. These are suggestions and do not represent "crony capitalism", etc. The report needs to be analyzed and the legislature can decide on priorities and spending. Don't like it, then vote in a new legislature but quit artificially creating issues where there are none! People need to sift through the politics and provide constructive criticism to the process rather than making uninformed comments in a public forum based on misinformation. IBJ should work harder to correct the record in these forums when blatant errors or misrepresentations are made.

  4. Joe ... Marriage is defined in the Bible ... it is mentioned in the Bible often. Marriage is not mentioned once in the US or Indiana Constitution ...

  5. Daniel - Educate me please: what does the Bible have to do with laws? If the government wasn't in the business of marriage to begin with, then it wouldn't have to "define" marriage at all. Marriage could be left as a personal, religious, or otherwise unregulated action, with no ties to taxes, legal status, etc. Then people could marry whomever they want, and all this silliness would go away. Remember to vote Libertarian in November.

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