GGP Gets Bankruptcy's Court's OK on Reorganization Plans

General Growth Properties, Chicago, has received Bankruptcy Court confirmation of the plans of reorganization for 194 debtors which own 85 regional shopping centers associated with approximately $10.25 billion of secured mortgage loans. The plans allow for the restructuring of the 87 secured mortgage loans and the payment in full of all undisputed claims of creditors. Key provisions of the plans include maturity date extensions resulting in an average loan duration of approximately 6.4 years from Jan. 1, 2010, with no loan maturing prior to January 2014, and continuation of interest on the loans at the current non-default rate. The weighted average contract interest rate for the loans covered by these plans is 5.33%. The all-in-interest rate after amortization of fees to be paid in connection with these plans is 5.51%. Among the properties involved are Ala Moana in Honolulu and St. Louis Galleria, plus 15 office properties and 3 community centers. Confirmation of the plans of reorganization for 26 additional debtors owning 10 properties associated with an additional $1.7 billion of secured mortgage loans has been adjourned pending satisfaction of various conditions. GCP and the associated debtors filed for Chapter 11 bankruptcy protection on April 16, 2009.