Chicago General Growth Properties expects 170 of its corporate entities to exit bankruptcy by the end of this year after reaching an agreement with creditors to extend loans, the mall operator told U.S. Bankruptcy Court in New York on Thursday.
According to a report by Reuters, the company reached a deal with representatives of 70 loans -- ranging in size from tens of millions to more than $1 billion -- for extensions averaging six years, it said.
General Growth said its concessions include increased amortization on loans and additional reserves. A tentative confirmation hearing on the plan is set for Dec. 14.
General Growth, the second-largest U.S. mall owner, has underscored the difficulties in the U.S. commercial real estate market, where there are now few sources of available funding amid the credit crisis. The company owns or controls more than 200 regional malls, including valuable properties such as the South Street Seaport in Manhattan, Fashion Show in Las Vegas and Faneuil Hall Marketplace in Boston.