GGP Moves Top Execs, Offers Vegas Properties

CHICAGO-General Growth Properties Inc., now under fire for having troubles with debt, has replaced its CEO and president with two new hires. CEO John Bucksbaum will continue to serve as chairman and president Robert Michaels will move to COO, but Adam Metz will serve as interim CEO and Thomas Nolan Jr. has been named interim president. The company also announced in a statement that it is putting its portfolio of Las Vegas retail properties up for sale, in an effort to raise cash.

While not tied to the moves directly by the company, officials said in the statement that an “affiliate of a Bucksbaum family trust” advanced unsecured loans to Michaels and former director and CFO Bernard Freibaum, who was let go by the company earlier this month. The loans were for the purpose of repaying personal margin debt relating to company stock. “The loan to Michaels, which totaled $10 million, has been repaid in full,” according to a company spokesman. “The loan to Freibaum, whose employment was terminated prior to the Board’s knowledge of these loans, totaled $90 million, and has $80 million presently outstanding.” The spokesman refused further comment.

Company officials said in the statement that no laws or SEC rules were broken by the loans and no company assets or resources were involved. The loans did violate company policy, the officials said.