CHICAGO, IL (December 17, 2009) – General Growth Properties, Inc. today announced the next steps in the restructuring process following Tuesday's announcement of the confirmation of plans of reorganization for 194 GGP subsidiary debtors owning 103 properties associated with approximately $10.25 billion of secured mortgage loans and the pending plans of reorganization for 26 additional debtors owning 10 properties associated with an additional $1.7 billion of secured mortgage loans. As previously announced, confirmation of these additional plans is subject to satisfaction of various conditions, including receipt of the approval of the Class B holders or mezzanine holders of such secured mortgage loans.
GGP is continuing to pursue a prompt resolution of approximately $3 billion of secured property debt remaining to be restructured. Concurrently, the Board of Directors and management are evaluating alternatives to reduce overall leverage and raise the capital necessary to emerge from bankruptcy in 2010. Financing alternatives include a public offering of GGP equity. In addition, the Board of Directors and management are considering all indications of interest in the Company.
"The confirmation of the plans of reorganization and the extension of mortgage maturities create the foundation for GGP to move forward to create a sustainable stand-alone capital structure which provides the basis of comparison for other strategic alternatives," said Adam Metz, chief executive officer. “The GGP Board is committed to maximizing value for all stakeholders and will choose the alternative that best achieves this objective.”
ABOUT GGP
GGP currently has ownership interest in, or management responsibility for, more than 200 regional shopping malls in 43 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 more than 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, effectiveness of the plans of reorganization, the bankruptcy filings of the other debtors not currently emerging from bankruptcy, 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.