General Growth seeks court OK of $400 million replacement DIP loan

By Caroline Salls

Pittsburgh, July 9 - General Growth Properties, Inc. requested court approval of a $400 million replacement debtor-in-possession facility from Barclays Bank plc, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company said the interest rate on the replacement facility would be 8% lower than on its original $400 million DIP loan, saving the company $2.7 million per month in interest payments.

Proceeds of the replacement loan would be used to repay the original facility and for general working capital purposes.

The interest rate on the replacement DIP facility will be 5.5%.

The facility will mature on the earlier of May 16, 2011 and the effective date of the company's plan of reorganization.

A hearing is scheduled for July 22.

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.