General Growth Announces Bankruptcy Court Confirmation of the Fashion Show and Palazzo Loan Reorganizations

General Growth Properties, Inc. (NYSE: GGP) announced the Bankruptcy Court has confirmed plans of reorganization to restructure the Fashion Show LLC loan (“Fashion Show Loan”) and Phase II Mall Subsidiary, LLC loan (“Palazzo Loan”), the final two major secured mortgage loans in its portfolio. Confirmation of both plans means the Bankruptcy Court has now confirmed plans of reorganization for the debtor subsidiaries associated with 107 of the company’s 108 secured mortgage loans, aggregating a total of approximately $14.8 billion. As a result, 220 GGP debtors have now consummated their plans of reorganization and exited Chapter 11 protection thus far.

“Today’s confirmations mark yet another significant step in GGP’s effort to restructure its capital structure and create a strong financial foundation for its emergence from bankruptcy,” said Thomas H. Nolan Jr., president and chief operating officer of GGP. “In just one year’s time from our bankruptcy filing, we have now received approval to restructure virtually all of our secured mortgage indebtedness after consensual negotiations with our lenders, allowing more than 140 properties to emerge from bankruptcy and continue on their path to growth.”

The revised terms on the $645.9 million syndicated Fashion Show Loan, which is secured by the Fashion Show Mall in Las Vegas, and the $249.6 million Palazzo Loan, secured by Las Vegas’ Shoppes at the Palazzo, extend the maturity dates on both loans to May 5, 2017. The interest rates on both were revised to float at 300 basis points over the London Inter-Bank Offered Rate (LIBOR), 300 basis points lower than the rate being paid since the restructuring of these two loans in November 2008.

Including these two loans, the weighted average contract interest rate for all $14.8 billion of the confirmed loans is 5.07%, while the all-in-interest rate after amortization of fees paid in connection with all of these loans is 5.26%. The weighted average duration of the loans is 6.5 years from January 1, 2010. Of the 107 loan restructurings confirmed by the court, seven are still awaiting final closing.

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 traded on the New York Stock Exchange under the symbol GGP.

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