General Growth to keep revised mortgage terms secret

Shopping center owner General Growth Properties Inc., which said it will file a Chapter 11 plan today covering properties with $8.9 billion in mortgages, intends to make no public disclosure of provisions in the revised mortgages related to maturity dates, fees, interest rates and amortization schedules.

General Growth believes that disclosure of details in the revised mortgages would compromise its ability to negotiate with mortgage holders that haven't as yet come to terms.

General Growth intends to take out of bankruptcy by the year's end the companies where the mortgage holders agreed on new terms. No agreement has been reached as yet on $6 billion in other mortgages. Those properties will remain in bankruptcy.

General Growth began the largest real estate reorganization in history by filing under Chapter 11 on April 16. The books of the Chicago-based company had assets of $29.6 billion and $27.3 billion in total liabilities as of Dec. 31. It owns or manages some 200 shopping mall properties.

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