General Growth amends reorganization plan

By Reuters
Posted Aug. 3, 2010 at 6:00 a.m.

General Growth Properties Inc. said it amended its reorganization plan to increase its capital structure flexibility and improve investment terms, and remains on track to emerge from bankruptcy in October.

The plan includes the reinstatement of $1.3 billion of Rouse Bonds due in 2012 and 2013.

The company said its emerging financing needs will be met partially by the reinstatement of the bonds and it does not expect to need a previously contemplated term loan.

General Growth said in the statement it also amended its clawback rights, enhancing its ability to sell $1.9 billion of equity at higher prices than committed by the sponsors in the original investment agreements.

In July, under the reorganization plan, Canada’s Brookfield Asset Management Inc., Fairholme Funds Inc. and Pershing Square Capital Management LP will provide $8.55 billion of capital, including $6.3 billion of equity and $250 million to fund a spinoff of some properties into a new publicly traded company..

Shares of General Growth Properties closed at $14.21 Monday on the New York Stock Exchange.

Read more about the topics in this post:

Companies in this article

General Growth

Read more about this company »

Comments are closed.