Monday, March 30, 2009

GGP Fails To Obtain Required Consents By Deadline

GGP announced that its consent solicitation expired on March 27 without obtaining the required minimum consents from The Rouse Company bondholders. As there has been no new extension announced, this can only mean that the company is now in default, although we would wait for a formal announcement from the company, which is continuing last minute "hail mary discussions" with TRLCP ad hoc bondholders. Importantly, no forbearances have been obtained and any bondholder can now effectively put the company in bankruptcy.

GGP's press release below:

General Growth Announces Continued Discussions with TRCLP Bond Holders’ Ad Hoc Committee and 2006 Senior Credit Agreement Lenders

Business Wire

CHICAGO -- March 30, 2009

General Growth Properties, Inc. (NYSE: GGP) (the “Company”) today announced it was continuing discussions with the ad hoc committee of the holders of all series of The Rouse Company LP (“TRCLP”) unsecured notes (the “TRCLP Notes”) and its syndicate of lenders under the 2006 Senior Credit Agreement, since TRCLP did not achieve the minimum acceptance levels for the previously announced consent solicitation from the holders TRCLP Notes to forbear from exercising remedies with respect to various payment and other defaults under the TRCLP Notes. Accordingly, the consent solicitation expired as of 5:00 p.m., New York City time, on March 27, 2009 in accordance with its terms.

“Although we did not achieve the minimum acceptance levels for each series of notes, we did receive a significant number of consents from the holders of all five series,” said Adam Metz, CEO. “We are grateful for the support we received from the holders of the TRCLP Notes and we are working with the representatives of the TRCLP Notes and the 2006 Senior Credit Agreement lenders to address the credit crisis facing the Company.” Sphere: Related Content
Print this post

3 comments:

ts said...

One would think Rouse et al would want GGP to reorganize rather than dragging the carcass through forbearance after forbearance. Surely they realize that their not going to get any better prices by waiting around to liquidate.

mr.creasote said...

ts, i'm sure they'll be more than happy to renegotiate...ONCE the CDS auction occurs.

Anonymous said...

proceeds mentor nmes toptd apprentices schutzs surry farmlands blank smug industries
servimundos melifermuly