General Growth Properties Inc., the second-largest mall owner in the U.S., said it has identified 13 “underperforming” retail properties — including Chapel Hills Mall in Colorado Springs — that may be turned over to lenders after the company emerges from bankruptcy.
General Growth has until two days after it exits bankruptcy to decide whether the properties, which serve as collateral on loans, should be deeded to lenders or the loans should be modified, the Chicago-based company said Thursday in a filing with the Securities and Exchange Commission. The company plans to leave Chapter 11 bankruptcy protection by Sept. 30, president Tom Nolan said last week.
Of the 13 retail properties that may be turned over to lenders, which General Growth calls “special consideration properties,” five had emerged from bankruptcy protection as of the end of 2009. The company had a gain of $54.2 million related to their reorganization. The eight other properties emerged in the first quarter, resulting in a $69.3 million gain, General Growth said in Thursday’s filing.
In addition to Chapel Hills, the properties consist of 11 malls and one community center in Virginia, Michigan, Louisiana, Tennessee, Utah, California and Florida, according to a list provided by a person with knowledge of the plans. The person asked not to be named because the list of properties hasn’t been made public.
