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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. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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