NEWS - Retail & Shopping Centers

The company that owns the Oglethorpe Mall, General Growth Properties, announced progress in structuring its debt last week, with hopes to come out of bankruptcy by mid-2010.

The company filed a plan of reorganization and related disclosure statements last week with the Bankruptcy Court in the Southern District of New York for its 92 regional shopping centers, office properties, community centers and related subsidiaries for approximately $9.7 billion of secured mortgage loans.

The amount exceeds the previously announced agreements in principal to restructure $8.9 billion of mortgage loans, as GGP has reached additional consensual agreements in principal with certain secured mortgage lenders since the prior announcement on Nov. 19.

Confirmation of the plan of reorganization is currently scheduled for Dec. 15, 2009. The plan of reorganization provides that all undisputed claims against the emerging debtors for pre-petition goods and services will be paid in full. “We are extremely pleased to take this important step of filing the plan of reorganization for these debtors,” said Thomas H. Nolan, Jr., president and chief operating officer of GGP.

“Our successful completion of agreements in principal with additional mortgage lenders shows our continued progress. We will continue to work with our other secured mortgage lenders and are hopeful that we will reach additional consensual agreements quickly,” said Nolan.

The Oglethorpe Mall is anchored by several retailers that are exclusive to the market area, including Belks, Sears, JCPenney, Macy's, Forever 21, Old Navy, Barnes & Noble, Macaroni Grill and Stein Mart. New retailers that have recently opened there include S & K Menswear, Aldo, aerie, Build-A-Bear Workshop, Select Comfort, Hollister Co., Cache, Yankee Candle, Aeropostale, Gymboree, and Charlotte Russe. Oglethorpe Mall also includes an 800-seat food court, family restrooms and a soft play area.

Trading in General Growth Properties, Inc. was suspended on April 16, 2009, which the company filed for Chapter 11 bankruptcy protection, with the stock now available only on the Pink Sheets.