CHICAGO, December 2, 2009 — GENERAL GROWTH PROPERTIES, INC. ("GGP") today announced the filing of the plan of reorganization and related disclosure statement with the Bankruptcy Court in the Southern District of New York for the 92 regional shopping centers, office properties, community centers and related subsidiaries associated with approximately $9.7 billion of secured mortgage loans. This amount exceeds the previously announced agreements in principal to restructure $8.9 billion of mortgage loans, as GGP has reached additional consensual agreements in principal with certain secured mortgage lenders since the prior announcement on November 19, 2009.
Confirmation of the plan of reorganization is currently scheduled for December 15, 2009. The plan of reorganization provides that all undisputed claims against the emerging debtors for pre-petition goods and services will be paid in full. Effectiveness of the plan of reorganization and emergence from bankruptcy for the debtors associated with these secured mortgage loans are subject to various conditions and approvals, including completion of definitive documentation and approval of the Bankruptcy Court. In addition, certain of the agreements remain subject to the approval of the Class B note holders or mezzanine holders. If these conditions are satisfied and such approvals are obtained, the regional shopping centers, office properties, community centers and other subsidiaries associated with these secured mortgage loans will emerge from bankruptcy prior to the end of 2009.
“We are extremely pleased to take this important step of filing the plan of reorganization for these debtors,” said Thomas H. Nolan, Jr., president and chief operating officer of GGP. “Our successful completion of agreements in principal with additional mortgage lenders shows our continued progress. We will continue to work with our other secured mortgage lenders and are hopeful that we will reach additional consensual agreements quickly.”
ABOUT GGP
GGP currently has ownership interest in, or management responsibility for, over 200 regional shopping malls in 44 states, as well as ownership in planned community developments and commercial office buildings. The company’s portfolio totals approximately 200 million square feet of retail space and includes over 24,000 retail stores nationwide. The Company’s common stock is currently traded in the over-the-counter securities market operated by Pink OTC Markets Inc. using the symbol GGWPQ.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements. Actual results may differ materially from the results suggested by these forward-looking statements, for a number of reasons, including, but not limited to, the bankruptcy filings of the debtors, our ability to refinance, extend or repay our near and intermediate term debt, our substantial level of indebtedness, changes in interest rates, retail and credit market conditions, impairments, land sales in the Master Planned Communities segment, the cost and success of development and re-development projects and our liquidity demands. Readers are referred to the documents filed by General Growth Properties, Inc. with the Securities and Exchange Commission, which further identify the important risk factors that could cause actual results to differ materially from the forward-looking statements in this release. The Company disclaims any obligation to update any forward-looking statements.