Rouse Falls Short on Minimum Solicitation of Unsecured Notes

The Rouse Co. LP failed to secure minimum acceptance levels for a consent solicitation from holders of unsecured notes issued under the 2006 senior credit agreement. However, Rouse's parent General Growth Properties Inc., Chicago, said it was continuing discussions with the ad hoc committee of the note holders and its syndicate of lenders. The solicitation would have given Rouse a forbearance of a payment default; the notes would have been due in April and May and acceptance of the solicitation would have delayed payment of the principal until the end of the year. The consent solicitation expired at 5:00 p.m., New York City time, on March 27, 2009. "Although we did not achieve the minimum acceptance levels for each series of notes, we did receive a significant number of consents from the holders of all five series," said Adam Metz, chief executive of GCP. A recent note by Fitch Ratings on this solicitation said that without the exchange, Rouse is likely to file for bankruptcy.