General Growth files for bankruptcy protection
Ongoing coverage from Crain's Chicago Business and ChicagoRealEstateDaily.com
| View a list of the nation's largest bankruptcies since 1980 | |||
| KEY EVENTS | |||
| General Growth bought Rouse Co. in November 2004 in a heavily leveraged acquisition. With the advent of the credit crisis, the company was unable to refinance debt related to that and other deals, leading to Thursday's Chapter 11 filing. | |||
| Sept. 22, 2008: Company says it is evaluating financial and strategic alternatives. | |||
| Oct. 3, 2008: Company announces the departure of longtime Chief Financial Officer Bernard Friebaum and says it is suspending its $2-a-share dividend. | |||
| Oct. 27, 2008: John Bucksbaum is replaced as CEO but remains chairman. Robert Michaels is replaced as president and resigns from the board but remains chief operating officer. Directors Adam Metz and Thomas Nolan are named interim CEO and interim president, respectively. | |||
| Nov. 10, 2008: Company raises the possibility that it might have to file for bankruptcy protection. | |||
| Nov. 25, 2008: Activist investor Bill Ackman reports a 7.5% stake in General Growth and a total economic interest in about 19.9% of the company. | |||
| Dec. 8, 2008: Mr. Ackman reports that his economic exposure to General Growth is now 25.6% of the company. | |||
| Dec. 17, 2008: Company announces it has gotten an extension to Feb. 12 on the loans for the Fashion Show and Palazzo shopping centers in Las Vegas, which were due Nov. 28. | |||
| Jan. 30, 2009: $4.1 billion in debt due on a 2006 credit facility and 2008 secured portfolio facility. Company says it has been given extensions to March 15 on that debt. | |||
| Feb. 13, 2009: General Growth says it is in default on the Fashion Show and Palazzo loans. | |||
| March 6, 2009: "Interim" designation removed from titles of CEO Adam Metz and President Thomas Nolan. | |||
| March 9, 2009: Company says its subsidiary Rouse Co. L.P. begins a solicitation asking holders of $2.25 billion in bonds to give forbearance through Dec. 31. The company later extends the deadline for the solicitation but still fails to get the required percentages of consents. | |||
| March 16, 2009: Company says it has gotten forbearance until Dec. 31 on $2.6 billion in debt. | |||
| April 13, 2009: The Wall Street Journal reports that a group of bondholders asks their trustee to sue General Growth. | |||
| April 16, 2009: General Growth files for Chapter 11 bankruptcy protection. | |||
(Bloomberg) -- Simon Property Group Inc.'s plan to invest in bankrupt rival General Growth Properties Inc. raises antitrust concerns that would hurt the mall owner after it reorganizes, Brookfield Asset Management Inc. said. (April 20, 2010)
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Simon would get too much control of General Growth: Fairholme founder
(Bloomberg) -- Simon Property Group Inc.'s bid to invest in General Growth Properties Inc. would give the largest U.S. mall owner too much control over its biggest competitor, said fund manager Bruce Berkowitz, who's backing a rival plan. (April 19, 2010)
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General Growth seeking better offer from Brookfield, says source
(Bloomberg) -- General Growth Properties Inc. is seeking a higher price, fewer stock warrants or both from Brookfield Asset Management Inc. after its bankruptcy exit plan was matched by Simon Property Group Inc., a person with knowledge of the discussions said. (April 16, 2010)
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General Growth studying Simon's latest offer
(Bloomberg) -- Simon Property Group Inc. made a new offer for rival General Growth Properties Inc., pledging to invest $2.5 billion in a reorganization and match the terms of a bankruptcy exit plan led by Brookfield Asset Management Inc. (April 14, 2010)
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Simon Property teams up with hedge fund to bid on General Growth
(Reuters) -- Simon Property Group Inc. teamed up with hedge fund Paulson & Co to try to unseat Brookfield Asset Management as the key investor in General Growth Properties Inc., throwing a surprising curveball in the contest for the No. 2 U.S. mall owner. (April 14, 2010)
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Sheli Rosenberg named director of General Growth Properties
(Crain's) -- General Growth Properties Inc. on Tuesday named to its board Sheli Z. Rosenberg, a long-time, former top executive to billionaire investor Sam Zell.(April 14, 2010)
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General Growth bid revision possible from Simon Property: source
(Reuters) -- Simon Property Group Inc is looking at ways to revise its offer for General Growth Properties to address the target's antitrust concerns, a source familiar with the matter said on Monday. (April 14, 2010)
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General Growth attracts dueling hedge funds
(Reuters) -- General Growth Properties Inc. is pitting some of the world's largest hedge funds against one another, as investors vie for a piece of the second-largest U.S. mall owner. (April 7, 2010)
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General Growth files plan that leaves room for better offers
(Reuters) -- General Growth Properties Inc. filed an eagerly awaited plan to exit bankruptcy on its own and laid out bidding procedures, setting the stage for others like Simon Property Group Inc. to jump in with rival offers. (April 1, 2010)
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General Growth, city settle dispute over Water Tower taxes
(Crain's) -- General Growth Properties Inc. has agreed to settle a dispute over real estate transfer taxes it owes the city from its 2004 acquisition of Water Tower Place by paying $300,920 -- not even one-tenth of the $4.62 million the Daley Administration had sought. (March 31, 2010)
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General Growth may file exit plan today: sources
(Crain's) -- General Growth Properties Inc. is getting closer to filing a bankruptcy exit plan, with its board planning to meet on Monday to give final approval to the proposal, sources familiar with the matter said. (March 29, 2010)
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General Growth plan could trigger rival moves
(Reuters) -- A reorganization proposal expected to be filed this week by bankrupt General Growth Properties Inc. could be the starting gun for rival suitors to jump into the fray. (March 25, 2010)
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Hedge fund may join General Growth plan: source
(Reuters) -- Elliott Management Corp., a major shareholder and creditor of General Growth Properties Inc., is in talks to join Brookfield Asset Management in its plan for the mall owner to exit bankruptcy as an independent company, a source familiar with the discussion said. (March 23, 2010)
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Simon CEO says General Growth's new plan won't pressure his firm
(Reuters) -- The chief executive of Simon Property Group Inc. said on Thursday a revised plan by management of General Growth Properties Inc. to emerge from bankruptcy would not put pressure on his company to sweeten its own $10-billion offer. (March 11, 2010)
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Ackman, major creditor offer to invest $3.9 billion in General Growth
(AP) -- Two major investors in General Growth Properties Inc. are joining Brookfield Asset Management in offering to inject a combined $6.5 billion in fresh funds into the shopping mall operator to help it emerge from bankruptcy protection. (March 8, 2010)
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General Growth gets extension on exit plan
(Reuters) -- U.S. mall operator General Growth Properties Inc. on Wednesday won a nearly five-month extension of the exclusive right to present a plan to exit bankruptcy, a setback for some creditors and suitor Simon Property Group Inc. (March 3, 2010)
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Ackman's role criticized by General Growth creditors, Simon
(Reuters) -- General Growth Properties Inc.'s unsecured creditors and suitor Simon Property Group Inc. on Tuesday criticized William Ackman's role in the mall owner's restructuring plan, alleging conflicts of interest given his position as a director and largest shareholder. (March 2, 2010)
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Simon CEO says General Growth hasn't shared information
(Reuters) -- The head of Simon Property Group Inc. said on Tuesday that despite signing an agreement, it has yet to receive any information from bankrupt General Growth Properties Inc., the smaller rival that Simon is trying to buy. (March 2, 2010)
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Upcoming ruling could be critical to General Growth's future
(Reuters) -- The top two U.S. mall owners will square off before a judge on Wednesday to shape the outcome of the largest U.S. real estate bankruptcy ever. (March 2, 2010)
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General Growth swings to loss in fourth quarter
(Reuters) -- General Growth Properties Inc. on Monday posted a loss in funds from operations for its malls and shopping centers, citing decreasing values of non-strategic assets and project development delays. (March 1, 2010)
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General Growth swings to loss in fourth quarter
Brookfield Asset Management Inc.'s proposal to recapitalize General Growth Properties Inc. would entrench the “bloated, inefficient and discredited GGP management — a blight on the REIT landscape,†according to a report released Thursday by analyst David Fick of Stifel Nicolaus & Co. (Feb. 26, 2010)
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Some creditors skeptical of General Growth plan: source
(Reuters) -- General Growth Properties Inc.'s plan to exit bankruptcy is drawing skepticism from some unsecured creditors, who worry that it might not work and that Simon Property Group Inc. could lose interest in a rival bid, a source close to creditors said on Thursday. (Feb. 25, 2010)
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Bucksbaum breaks silence on General Growth woes
(Crain's) -- General Growth Properties Inc. Chairman John Bucksbaum countered his critics Wednesday night, blaming the mall owner's collapse last year on the financial crisis, not the company's $7.2-billion acquisition of Rouse Co. in 2004. (Feb. 25, 2010)
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Westfield signals interest in General Growth
(Reuters) -- General Growth Properties Inc. on Wednesday unveiled a bankruptcy exit plan bankrolled by Brookfield Asset Management that would split it in two, as suitors circled the second-largest U.S. mall owner. (Feb. 25, 2010)
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Shareholder sues General Growth for rejecting Simon offer: report
(Reuters) -- A General Growth Properties Inc. shareholder has filed suit against the company's directors, saying they should not have rejected Simon Property Group Inc.'s buyout offer of $10 billion, Bloomberg News reported Saturday. (Feb. 21, 2010)
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War of words continues in Simon-General Growth tussle
(Reuters) -- Simon Property Group Inc. said it could not agree to conditions General Growth Properties Inc. wanted to impose before talks about Simon's $10-billion bid for the No. 2 U.S. mall owner. (Feb. 19, 2010)
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Blackstone enters fray as General Growth looks for $2 billion
(Reuters) -- General Growth Properties Inc. is looking to raise $1 billion to $2 billion from public markets to fund an independent exit from bankruptcy protection, a source familiar with the situation said Thursday. (Feb. 18, 2010)
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Simon blasts General Growth for 'lack of urgency'
(Crain's) -- Simon Property Group Inc. is turning up the heat on General Growth Properties Inc., firing off another letter Wednesday accusing the mall owner of dragging its feet on a potential $10-billion takeover. (Feb. 17, 2010)
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General Growth turns down Simon's takeover offer
(Crain's) -- General Growth Properties Inc. rebuffed Simon Property Group Inc.'s $10-billion takeover offer on Tuesday, saying that it wants to explore other options first. (Feb. 16, 2010)
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General Growth stock jumps on Simon's $10-billion offer
(Crain's) -- Shares in General Growth Properties Inc. jumped almost 28% Tuesday after Simon Property Group Inc. said it has offered more than $10 billion for the Chicago-based mall owner. (Feb. 16, 2010)
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Judge approves 'big step' for General Growth
(Reuters) -- A judge overseeing the bankruptcy of mall operator General Growth Properties Inc. approved a plan Tuesday that will release 103 properties from Chapter 11, and paves the way for the company itself to focus on surfacing from bankruptcy protection. (Dec. 15, 2009)
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Hedge fund manager shorting General Growth stock
(Reuters) -- Just when it appeared the optimists had been proven correct about bankrupt mall owner General Growth Properties Inc., a new investor has emerged arguing the company's shares are likely worthless. (Dec. 9, 2009)
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Loan deals to cost General Growth $423 million
(Reuters) -- General Growth Properties Inc.'s recent agreements with lenders holding a majority of its property debt are expected to cost the bankrupt mall owner $423.2 million, according to court documents filed Tuesday. (Dec. 9, 2009)
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Brookfield has 'very significant stake' in General Growth
(Reuters) -- Brookfield Asset Management, a global property investor, said on Monday it is a meaningful creditor in bankrupt U.S. mall operator General Growth Properties Inc. and has held talks to assist it in its reorganization. (Dec. 8, 2009)
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Some General Growth debt bought by Brookfield, Simon: report
(Reuters) -- Brookfield Asset Management Inc. and Simon Property Group Inc. have bought some of General Growth Properties Inc.'s bank debt and bonds to position themselves for a bid for the bankrupt U.S. mall owner, the Wall Street Journal reported on Thursday. (Dec. 3, 2009)
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General Growth files exit plan, reworks more debt
(Reuters) -- General Growth Properties Inc. reached agreements with additional lenders to extend loans on shopping centers and other properties and will ask a judge later this month to approve the plan that so far covers $9.7 billion of its secured debt. (Dec. 2, 2009)
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General Growth heiress sues company's law firm
(Crain's) -- The daughter of a co-founder of General Growth Properties Inc. has sued the shopping mall owner's longtime law firm for legal malpractice, blaming it for her loss of more than $300 million when the company spiraled into bankruptcy this year. (Aug. 19, 2009)
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'Heavy lifting has just begun' for General Growth
(Reuters) -- General Growth Properties Inc. has persuaded a bankruptcy judge not to break up the No. 2 U.S. mall operator. Now for the hard part. "The heavy lifting on the financial side has just begun," said Green Street Advisors senior analyst Jim Sullivan. "You've got a bunch of lenders to the company who want their money back, and they want it back in full, and they want it sooner rather than later." (Aug. 19, 2009)
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General Growth wins key ruling in Chapter 11 case
(Reuters) -- A U.S. bankruptcy judge ruled Tuesday that several subsidiaries of bankrupt mall operator General Growth Properties Inc. should be allowed to stay in Chapter 11, despite lender claims that the cases were ineligible for bankruptcy protection. (Aug. 12, 2009)
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Upcoming General Growth ruling 'could be dangerous for market'
(Reuters) -- General Growth Properties Inc. could emerge from Chapter 11 bankruptcy protection sooner than most cases its size if a judge next week refuses a request to strip a number of company's malls from the case, a lawyer involved in the case said Tuesday. (June 10, 2009)
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Ackman named to General Growth board
(Reuters) -- Bill Ackman, founder of the Pershing Square hedge fund, has joined the board of mall operator General Growth Properties Inc., where he is a large shareholder. (June 8, 2009)
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Judge says Kirkland can work on General Growth's Chapter 11
(Reuters) -- A U.S. bankruptcy judge on Wednesday allowed mall owner General Growth Properties Inc. to hire two law firms to represent the company in its bankruptcy, despite an objection from the U.S. Trustee. (May 20, 2009)
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U.S. objects to Kirkland working for General Growth
(Crain's) -- Jamie Sprayregen has represented United Airlines, Chiquita Brands Inc. and Conseco Inc., but the prominent Chicago bankruptcy lawyer won't represent General Growth Properties Inc. if a U.S. trustee gets her way. (May 15, 2009)
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CMBS market relieved so far with General Growth judge
(Reuters) -- Commercial mortgage bondholders took some comfort after a judge overseeing General Growth Properties Inc.'s bankruptcy case stopped short of a move they say would have undermined the structures of their securities. (May 15, 2009)
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Judge approves General Growth financing
(Reuters) -- A federal bankruptcy judge on Wednesday approved a two-year, $400-million financing package put together by a group led by Farallon Capital Management to help mall owner General Growth Properties Inc. continue to operate. (May 14, 2009)
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Creditors hit Ackman's new plan to finance General Growth
(Crain's) -- A new proposal by William Ackman to provide bankruptcy financing for General Growth Properties Inc. would create a conflict of interest and give the activist investor improper control over the mall owner, a creditors committee charges. (May 11, 2009)
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Lenders want some malls out of General Growth's Chap. 11
(AP) -- A group of lenders accused shopping mall operator General Growth Properties Inc. of including eight properties in its bankruptcy filing that do not need court protection. (May 5, 2009)
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Bucksbaum family could see stake vanish
(Crain's) -- The Bucksbaum family's 21% stake in General Growth Properties Inc., which has already plummeted from $4 billion two years ago to about $70 million, could wind up worth absolutely nothing when the company emerges from Chapter 11. (April 16, 2009)
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General Growth unlikely to sell Water Tower Place
(Crain's) -- General Growth Properties Inc.'s most high-profile local properties, Water Tower Place, Oakbrook Center and Northbrook Court, were not part of the company's bankruptcy filing on Thursday and are unlikely to be sold. (April 16, 2009)
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General Growth blames credit crisis, not shopping slowdown
(Crain's) -- The meltdown in financial markets, not the deep slump in the retail industry, brought General Growth Properties Inc. to its knees Thursday. (April 16, 2009)
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General Growth files for bankruptcy protection
(Reuters) -- General Growth Properties Inc., the second-largest U.S. mall owner, declared bankruptcy on Thursday in the biggest real estate failure in U.S. history. (April 16, 2009)
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In the words of General Growth's CEO . . .
(Crain's) -- General Growth Properties Inc. CEO Adam Metz said the company had "virtually no hope" of refinancing billions in past-due debts and upcoming maturities due to locked-up credit markets. (April 16, 2009)
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See General Growth's biggest creditors
(Reuters) -- The following is a consolidated list of top creditors holding the largest unsecured claims against General Growth Properties Inc. and its affiliated debtors. (April 16, 2009)
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Sales of General Growth malls could set prices
(Reuters) -- Shopping malls sold in bankruptcy by General Growth Properties Inc. may finally set prices in a stalled market and release billions of dollars stockpiled for good buys in U.S. commercial real estate. (April 16, 2009)
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Bankruptcy case won't affect tenants in short term
(Reuters) -- The bankruptcy of the second-largest U.S. mall owner, General Growth Properties Inc., will have little immediate effect on its retail tenants, but could hurt them down the road. (April 16, 2009)
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A rundown on General Growth's debt
(Crain's) -- General Growth Properties Inc., which traces its history to a single shopping center in Cedar Rapids, Iowa, has amassed more than $27.3 billion in debt. (April 16, 2009)
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Dealmaker: General Growth workout vet now aiding retailers
(Crain's) -- Scott Keeney, who handled troubled tenants for mall owner General Growth Properties Inc., is now helping retailers squeeze their landlords for better deals. (April 16, 2009)
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Some General Growth investors want to sue
(Reuters) -- A group of General Growth Properties Inc. bondholders have asked their trustee to sue the mall owner for payment on their past-due bonds, the Wall Street Journal reported Monday. (April 14, 2009)
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Bankruptcy best option for General Growth: Ackman
(Reuters) -- Hedge fund manager William Ackman, who controls 25 percent of General Growth Properties Inc. shares, said bankruptcy was the best option for the second largest U.S. mall operator, which is facing billions in loans it cannot refinance. (April 2, 2009)
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Bucksbaum's burden
Four years after pulling off one of the biggest takeovers in the history of U.S. real estate investment trusts, John Bucksbaum has opened the door to the sale of his own company, General Growth Properties Inc. And not because he wants to. (Crain's Chicago Business, Oct. 6, 2008)
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