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Home / Today's News / General Growth agrees to deal to exit bankruptcy protection (1:19 p.m. 2/25/10)

General Growth agrees to deal to exit bankruptcy protection (1:19 p.m. 2/25/10)

Los Angeles (AP) — The nation’s second-largest shopping mall operator, General Growth Properties Inc., has reached a deal with Canada’s Brookfield Asset Management Inc. that will speed its exit from bankruptcy protection, according to General Growth.

Under the plan, General Growth — which owns Fox River Mall in Appleton, Oakwood Mall in Eau Claire and Mayfair Mall in Wauwatosa — would spin off some assets as a new company named General Growth Opportunities, which would essentially hold assets the company concedes aren’t producing much income.

The pact would allow General Growth to raise the money it needs to pay off some $7 billion in debt and interest to its creditors. Stockholders would get $15 a share.

Brookfield would invest $2.6 billion in cash in exchange for General Growth shares. That would give Brookfield a roughly 30 percent stake in General Growth and the right to nominate three directors to the board.

The agreement is subject to approval by a bankruptcy court judge, and creditors and shareholders.

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