CFO out at General Growth Properties
General Growth Properties Inc. announced the appointment of Edmund Hoyt as the company's chief financial officer on an interim basis.
Hoyt succeeds Bernard Freibaum, who is no longer employed by the company. The company will promptly commence a search for a permanent chief financial officer.
General Growth is the second-largest U.S. shopping-mall owner, with local properties including Northbrook Court, Spring Hill Mall in West Dundee, Oakbrook Center and Water Tower Place.
Hoyt has served as senior vice president and chief accounting officer of the company since 2000. Hoyt has been with the company since 1986 and has held a variety of positions in financial planning, accounting and controllership roles.
All continuing executive officers of the company have informed the company that they have repaid in full all previously existing margin loans and thus there will be no further sales of company stock by those executive officers to satisfy margin calls. In addition, the Bucksbaum family interests have informed the company that they have not sold any shares of company stock and that they do not intend to sell any of their shares of company stock. The company has been informed by Freibaum that on Oct. 2, he sold approximately 2.95 million shares of common stock to satisfy margin calls and applied all of the proceeds to repay outstanding margin debts. After those sales, Freibaum has informed the company that he beneficially owns approximately 1.3 million shares of stock and has approximately $3.4 million of margin debt outstanding.
The company also announced that, given the uncertainty and volatility in the capital markets, and the fact that all distributions currently required to maintain REIT status have already been made this year, the Company's board of directors has determined to suspend the common stock dividend at this time. Such suspension will be reviewed by the board in the context of the REIT requirements and the company's ongoing capital position.
The company continues to be current on all of its debt obligations and is continuing its full financial and strategic review with its advisors.