General Growth to emerge from Chapter 11

December 03, 2009

NEW YORK - General Growth Properties Inc. said Wednesday that lenders have agreed to restructure about $9.7 billion in debt under a plan that will allow the nation's second-largest shopping mall operator to emerge from bankruptcy protection by the end of the year. General Growth will pay off loans covering 92 regional shopping centers, offices, community centers and related subsidiaries. The plan will allow the real estate investment trust to retain ownership of the properties, including Harborplace & The Gallery in Baltimore's Inner Harbor. The Chicago-based company expanded aggressively during the real estate boom, amassing $27 billion in debt. As the real estate market imploded and financing dried up, General Growth was unable to refinance its short-term loans and in April became the largest U.S. real estate company to file for bankruptcy.

- Associated Press


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