General Growth completes restructuring of $9.4 billion of mortgages

By Caroline Salls

Pittsburgh, Jan. 25 - General Growth Properties, Inc. has completed the restructuring of 74 secured mortgage loans totaling $9.4 billion, according to a company news release.

As a result, the company said 180 General Growth subsidiary debtors owning 96 properties are no longer in bankruptcy.

Restructuring of the remaining 16 loans totaling $2.1 billion is expected to be completed during the next few weeks, the release said.

When these restructured loans are complete, General Growth said all of the plans of reorganization previously approved by the bankruptcy court will also be fully implemented.

As a result, when complete, 36 additional subsidiary debtors associated with 16 properties will no longer be in bankruptcy.

In addition, the company said its joint venture subsidiary Carolina Place LLC has closed on an extension of its $155 million mortgage loan originally scheduled to mature this month.

General Growth said the four-year extension is at the current 4.5975% contract rate of interest, and the all-in-interest rate after amortization of fees to be paid in connection with this loan is 5.11%.

According to the release, Carolina Place is a regional shopping center located in Pineville, N.C. This joint venture subsidiary was not one of the General Growth entities that sought bankruptcy court protection.

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 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 09-11977.

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