General Growth Properties Completes Financial Restructuring and Emerges from Chapter 11
November 09 2010 - 5:24PM
Business Wire
General Growth Properties, Inc. (NYSE: GGP) today announced it
has successfully completed the final steps of its financial
restructuring and has emerged from Chapter 11. The emergence marks
the conclusion of one of the largest and most complex bankruptcy
cases in U.S. corporate history.
"Today marks the successful end of one chapter in GGP’s history
and the beginning of another,” said Adam Metz, chief executive
officer of GGP. “Over the past nineteen months, we have taken
extraordinary steps to remake GGP’s entire financial structure
while at the same time refocusing our operations across all of our
shopping mall properties. I am especially grateful to our employees
for their commitment and dedication throughout this challenging
process. We continue the important work of executing on the many
operational and financial improvements we initiated during the
reorganization process.”
In its historic restructuring, GGP successfully:
- Consensually restructured approximately
$15 billion of project-level debt
- Recapitalized with $6.8 billion in new
equity capital
- Paid all creditor claims in full
- Achieved substantial recovery for
equity holders
As part of its plan of reorganization, GGP has split itself into
two separate and independent publicly traded corporations. GGP
shareholders as of the record date of November 1, 2010 received
common stock in both companies. The new GGP, which will commence
trading tomorrow on The New York Stock Exchange under the ticker
symbol “GGP,” is the second-largest shopping mall owner and
operator in the country, with more than 183 regional malls in 43
states. The spin-off company, The Howard Hughes Corporation,
consists of GGP’s portfolio of master planned communities and other
strategic real estate development opportunities. This company will
trade under the ticker symbol “HHC” on The New York Stock
Exchange.
UBS Investment Bank and Miller Buckfire & Co., LLC are
serving as financial advisors to General Growth Properties in
connection with the restructuring, and Weil, Gotshal & Manges
LLP and Kirkland & Ellis LLP are acting as legal counsel to the
Company.
ABOUT “New” GGP
“New” GGP will have ownership and management interest in more
than 183 regional shopping malls in 43 states as well as ownership
interests in other rental properties.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements. Actual
results may differ materially from the results suggested by these
forward-looking statements, for a number of reasons, including, but
not limited to, the success of our equity offering, our ability to
refinance, extend, restructure or repay our near and intermediate
term debt, our substantial level of indebtedness, our ability to
raise capital through equity issuances, asset sales or the
incurrence of new debt, retail and credit market conditions,
impairments, our liquidity demands and retail and economic
conditions. Readers are referred to the documents filed by General
Growth Properties, Inc. with the Securities and Exchange
Commission, which further identify the important risk factors which
could cause actual results to differ materially from the
forward-looking statements in this release. The Company disclaims
any obligation to update any forward-looking statements.
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