General Growth reports $12 million net loss in April
The General Growth Properties Inc. companies in Chapter 11 reported a $12 million net loss in April on total revenue of $205.3 million. Operating income in the month was $80.9 million. Interest expense was $98 million.
General Growth ended April with $507.1 million in cash.
Because the first of General Growth's property-owning units confirmed their Chapter 11 plans at the end of 2009, the six- month period in the plans for objecting to claims is about to run out. Given 10,000 claims that were filed, General Growth asked for an additional three months to work on resolving the final approximately 3,500 claims.
Filed claims totaled more than $250 billion. General Growth says it already has resolved two-thirds of the claims.
In the April operating statement, General Growth said there are 13 under-performing properties it may decide to deed over to lenders when the parent company emerges from Chapter 11 with a confirmed plan.
In May, the bankruptcy judge anointed a group including Brookfield Asset Management Inc. to be the lead bidder at auction to decide who provides the most advantageous equity- purchase and financing commitments underpinning a reorganization plan that will pay all creditors of the holding company in full. The property-owning units have all already confirmed their own plans that pay their creditors fully.
Other erstwhile investors were to submit competing proposals by June 2. General Growth will pick the best proposal by July 2. The hearing for approval of a disclosure statement is scheduled for July 30, with the confirmation hearing for approval of the plan to take place Sept. 30.
General Growth began the largest real-estate reorganization in history by filing under Chapter 11 in April 2009. The books of Chicago-based General Growth had assets of $29.6 billion and total liabilities of $27.3 billion as of Dec. 31, 2008. The company owns or manages more than 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).