LOS ANGELES — General Growth Properties Inc. said Thursday a bankruptcy judge has approved its reorganization plan, clearing the way for the nation’s second-largest shopping-mall owner to emerge from Chapter 11 bankruptcy protection early next month.
U.S. Bankruptcy Court Judge Allan Gropper in New York confirmed the Chicago-based company’s plan. General Growth expects to conclude its restructuring Nov. 8, bringing to a close the largest real-estate bankruptcy case in U.S. history.
“The confirmation of our plan is an important milestone as we lay the groundwork for a successful future for (General Growth),” said chief executive Adam Metz. “We are now prepared to begin a new era for GGP on firm financial footing.”
General Growth owns Park Meadows and Southwest Plaza in the Denver area, Foothills Mall in Fort Collins, and Chapel Hills Mall and Austin Bluffs Plaza in Colorado Springs.
General Growth sought bankruptcy protection in April 2009 under the weight of nearly $28 billion in liabilities, much of it racked up during the real-estate-boom years as the company seized on cheap lending to bankroll acquisitions. The U.S. financial crisis pushed it over the edge, all but drying up companies’ access to capital to refinance debts.
Now it will emerge with $6.8 billion in equity commitments and having restructured and extended $15 billion in debt. All creditors will be paid in full — a rare outcome in bankruptcy cases.
