General Growth seems to have struck a major breakthrough with lenders. Lenders have waived default on a $2.58 billion credit agreement until the end of the year, giving the REIT some much needed breathing room as it seeks to avoid filing for bankruptcy protection. It's not out of the woods yet, however. It is still seeking forbearance on more than $2 billion in additional debt. If it can't get that, bankruptcy remains a real possibility.
In other news, William Ackman is seeking a seat on General Growth's board of directors. (He's also seeking seats on Target's board.)
But the real estate investment trust's subsidiary, The Rouse Company LP, did not reach agreement on a similar forbearance from holders of $2.25 billion in debt. It extended the expiration date for the so-called consent solicitation it had previously announced until March 20 from March 15.
General Growth, which faces $27 billion of debt maturing over the next four years, warned last week it was already past due on $1.18 billion of debt -- not including the Rouse Company notes -- and that this threatened the firm's liquidity position.
Hedge fund manager William Ackman, one of the company's biggest shareholders, told Bloomberg Television on Monday that he expects the company to file for bankruptcy "imminently."
Past links and stories:
- March 10, 2009, GGP Asks for More Time
- March 3, 2009, GGP Reportedly Getting Bids for Properties
- Feb. 24, 2009, GGP Posts Gains But Drops Earnings Call and Estimates
- Feb. 20, 2009, GGP Bankruptcy Scenario
- Feb. 18, 2009, GGP Misses Payments
- Feb. 2, 2009, General Growth Gets Another Extension
- Jan. 5, 2009, GGP Switches Bankruptcy Advisors
- Dec. 30, 2008, GGP Signs Forebearance Agreement
- Dec. 19, 2008, GGP Puts Centers on the Block
- Dec. 18, 2008, General Growth Extension Comes Through
- Dec. 15, 2008, GGP "Continuing its Discussions with Lenders"
- Dec. 14, 2008, Breaking: GGP Refinances
- Dec. 5, 2008, Citi Plays Hardball With GGP
- Dec. 3, 2008, Centro, GGP Find Ways to Hang On
- Dec. 1, 2008, GGP Gets Two Week Extension
- Nov. 25, 2008, Ackman Builds Stake in GGP
- Nov. 20, 2008, General Growth Hires Bankruptcy Advisor
- Nov. 17, 2008, General Growth Downgraded; Feldman to Stop Filing Public Reports
- Nov. 12, 2008, General Growth Roundup
- Nov. 11, 2008, General Growth Warns of Default
- Nov. 5, 2008, GGP, Kimco Fall After Cutting Forecasts
- Nov. 2, 2008, General Growth "Almost Literally Worth Nothing"
- Oct. 17, 2008, Management Changes at GGP
- Oct. 15, 2008, Margin Calls Hit Two More Retail REITs
- Oct. 7, 2008, General Growth Near Bankruptcy?
- Oct. 3, 2008, General Growth CFO Steps Down; Company Suspends Dividend
- Oct. 2, 2008 GGP Under Fire for Inclusion on Short-Sell Ban List
- Oct. 1, 2008, Could General Growth Be Sold?
- Sept. 23, 2008, Short Selling Banned on General Growth
- Sept. 22, 2008, General Growth Strikes Back
- Sept. 16, 2008, General Growth Offers More Recourse
- Aug. 12, 2008, Another Look at GGP's Debt
- Aug. 6, 2008, Analysis of GGP's Debt
- July 25, 2008, Stories With Bigger Implications?
- July 14, 2008, GGP Lines Up New Financing
- April 16, 2008, GGP's Growing Debt Problem