Judge: General Growth creditors can trade claims

General Growth Properties Inc.'s unsecured creditors committee members can trade claims against the mall operator once they set safeguards to prevent employees from improperly using non-public information, a judge ruled.

The creditors said they will establish "screening walls" to isolate trading activities from their activities as members of the official committee. The request was approved today by U.S. Bankruptcy Judge Allan Gropper in New York.

The screening wall includes using different personnel, offices, file space and phone lines for trading versus committee business, according to court papers. The request was made by creditors American High-Income Trust, Fidelity Fixed Income Trust, Capital Ventures International, Eurohypo AG, Calyon New York Branch and General Electric Capital Corp.

General Growth, based in Chicago, filed for bankruptcy court protection on April 16 after amassing $27 billion in debt during an acquisition spree that turned it into the second- largest shopping-mall owner behind Simon Property Group Inc.

The case is In re General Growth Properties Inc., 09-11977, U.S. Bankruptcy Court, Southern District of New York.