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The Honolulu Advertiser
Posted on: Wednesday, February 24, 2010

General Growth says deal will enable it to emerge from bankruptcy

Advertiser News Services

Shopping mall operator General Growth Properties Inc. said today it has reached a deal with a Canadian property manager that will enable it to emerge from Chapter 11 bankruptcy protection.

General Growth, whose Hawaii holdings include Ala Moana Center and Whaler’s Village, plans to split itself into two companies and receive $2.63 billion in capital from Toronto-based Brookfield Asset Management Inc.
The proposal would give General Growth equity holders total consideration of $15 a share, the Chicago-based company said in a statement today.
Stockholders would receive one new General Growth share with an initial value of $10, plus one share of a new company, to be called General Growth Opportunities, with an initial value of $5, for each share they now own. Unsecured creditors would be repaid in full plus interest.
The plan comes after an unsolicited $10 billion takeover bid by Simon Property Group Inc., the largest U.S. shopping mall owner. Under that offer, made public last week, equity investors would have received about $9 a share and unsecured creditors paid in full for about $7 billion. General Growth said the offer was too low and it would invite others to submit bids.