Bankruptcy
GGP failed to reach a deal with its creditors; and on April 16, 2009, filed for Chapter 11 bankruptcy: the largest real estate bankruptcy since at least 1980, and the largest ever filing by a mall operator.
According to its bankruptcy filing, GGP had about $29.6 billion in assets at the end of 2008, and $27.3 billion in debt. GGP suspended its dividend, halted or slowed nearly all development projects and cut its work force by more than 20%. GGP also sold some of its non-mall assets. Chief Executive Adam Metz said "While we have worked tirelessly in the past several months to address our maturing debts, the collapse of the credit markets has made it impossible for us to refinance maturing debt outside of Chapter 11." GGP obtained $375 million in debtor-in-possession financing. Mall gift cards remained usable.
On February 24, 2010, GGP finalized a deal with Canadian property company Brookfield Asset Management that would involve up to a $2.625 billion equity investment.
Read more about this topic: General Growth Properties
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