General Growth Properties Files Reorganization Plan
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General Growth Properties (GGP
) filed a reorganization plan, seeking to emerge from bankruptcy in October with $7 billion to $8.5 billion in new capital, the company announced
Tuesday. The nation's second-largest shopping-mall operator, which filed for Chapter 11 bankruptcy in April last year
, plans to split off a portion of its business to create a second publicly traded company, Spinco. The arrangement is part of a restructuring that's intended to satisfy GCP's debt and other claims in full.
Under the restructuring, Brookfield Asset Management, Fairholme Capital Management and Pershing Square Capital Management will provide the $8.55 billion in new capital that will largely come in the form of $10 per share for the new GGP. The Teacher Retirement System of Texas will provide an additional $500 million investment into the new GGP at $10.25 a share.