General Growth confirms $500M from Blackstone

By Associated Press
Posted Aug. 18, 2010 at 2:12 p.m.

General Growth Properties Inc. says asset manager Blackstone Group has agreed to invest about $500 million for shares in the shopping mall operator once it emerges from Chapter 11 bankruptcy protection.

General Growth disclosed the agreement in a regulatory filing on Wednesday detailing the company’s latest plan to exit bankruptcy.

An investor group led by Canadian property manager Brookfield Asset Management Inc. has agreed to provide up to $8.5 billion in capital to finance the proposed restructuring plan.

It calls for the Chicago-based company to emerge from bankruptcy protection this fall as two separate companies.

The Blackstone Group would receive shares in both companies and an allocation of stock warrants.

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