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GGP Said to Reach Pact With Creditors

NEW YORK CITY-Lawyers told a federal judge here Thursday that the plan would cover 166 of GGP's operating entities, the Wall Street Journal reported

By Paul Bubny | Updated on November 19, 2009

NEW YORK CITY-Attorneys for General Growth Properties told a federal bankruptcy judge here Thursday that the giant mall operator has reached an agreement with lenders and expects 166 of its corporate entities to exit bankruptcy by year’s end, according to the Wall Street Journal . A confirmation hearing on the plan is tentatively set for Dec. 14.

The Journal reported that the deal would extend the due dates on the mortgages by four-and-a-half to five years in return for GGP providing significant concessions, including additional amortization payments, more reserves for the loans and additional bankruptcy protections for the lenders. GGP’s attorneys didn’t specify how much the settlement will cost the company.

The outline of the plan presented before US Bankruptcy Judge Allan Gropper didn’t go into detail on the total amount of debt covered by the deal. GGP will use the pact as a template for negotiating deals with its other creditors, including the holders of about $6.5 billion in unsecured debt, according to the Journal.

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