General Growth projects $423.2 million of reorganization plan payments

By Caroline Salls

Pittsburgh, Dec. 9 - General Growth Properties, Inc. said it expects to make an estimated $423.2 million of payments under its plan of reorganization, according to projections filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

Of this amount, the company said $315.8 million is associated with its mortgage and mezzanine debt restructuring, including extension fees, servicer fees and expenses, catch-up amortization payments, accrued interest, the funding of escrows and other expenses.

In addition, $107.4 million is associated with distributions related to pre-bankruptcy claims.

According to the filings, General Growth is expected to fund these restructuring costs and plan distributions predominately from funds generated since the onset of its bankruptcy case, with additional support from excess liquidity.

The company said project-level projections completed in August show that it will have cash flow well in excess of the amounts necessary to satisfy principal and interest payments under restructured secured loans and all other cash needs through 2014.

However, General Growth said its cashflow in 2010 is estimated to be $51.6 million less than its cash needs, primarily because of the $150 million pay-down of secured debt on its Ala Moana property as negotiated as part of the restructuring of that entity's property level secured loan.

The company expects to fund this shortfall out of excess liquidity, and the Ala Moana pay-down can also be deferred beyond 2010.

According to the financial projections, the consolidated cash forecast shows that General Growth has enough cash to fund emergence costs, as well as the estimated $51.6 million shortfall in 2010.

Including all estimated emergence costs and other payments required by the plan, the company projects it will have $192.3 million in cash available at the end of 2010.

General Growth, a Chicago-based real estate investment trust that owns regional shopping malls, master planned community developments and commercial office buildings, filed for bankruptcy on April 16, 2009. Its Chapter 11 case number is 09-11977.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.