General Growth to auction lots outside Las Vegas
Mall owner General Growth Properties Inc. is asking the bankruptcy court to approve a procedure for selling some of the remaining 7,000 undeveloped acres at Summerlin, the 22,500-acre master-planned community outside Las Vegas.
Absent higher offers, General Growth will sell 232 lots to Richmond American Homes of Nevada Inc. for $18 million. Richmond is a subsidiary of Denver-based M.D.C. Holdings Inc.
A subsidiary of Pulte Homes Inc. is under contract to buy 271 lots for $19.9 million.
General Growth arranged a hearing for July 22 where the bankruptcy judge in New York will establish procedures for soliciting other offers and holding an auction. The same procedures would apply when General Growth decides to sell other lots in Summerlin.
General Growth said it will file a plan and explanatory disclosure statement by July 9 where the four top-tier companies will promise full payment to all creditors. All the property- owning subsidiaries have already confirmed plans paying their creditors in full. The disclosure statement hearing is to be held in August, with the confirmation hearing for approval of the plan to take place in October.
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).