Just in from WBAL radio AM 1090, General Growth Properties, the Chicago based developer has filed for bankruptcy."Our core business remains sound and is performing well with stable cash flows. We believe that chapter 11 is the best process for restructuring maturing mortgage loans, reducing the company's corporate debt, and establishing a sustainable, long-term capital structure for the company," said Adam Metz, chief executive. [Steve Goldstein, Marketwatch.com]
GGP currently has more than $25 billion in debt to pay off. On Wall Street, shares of the company closed at $1.05 Wednesday, tumbling 97 percent over the last fiscal year.
GGP has said in a statement that it has secured a commitment for $375 million in bankruptcy financing from Pershing Square Capital Market, the hedge fund group that owns more than 25 percent of the company.
On a more local level, the company will continue to operate, though under increasing scrutiny from Howard County government and residents. I do not believe their current financial predicament will affect the company's plans to redevelop Town Center.
I've called GGP in Columbia and Chicago, still no quote regarding the bankruptcy filing. I've just made contact with Greg Hamm. I will obtain a quote from Hamm sometime after noon. I'll post quotes and more information as it becomes available!
-The Gonzo Journalist-
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http://www.columbia2point0.com
Columbia 2.0 is also blogging about this. Check it out when you get a chance.
This does not mean that they are going out of business. restructuring isn't that big of a deal--only business as usual. Columbia 2.0's take on the bankruptcy had an interesting take!
www.columbia2point0.com
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