Bankruptcy Exit Plan Delayed for General Growth
Complicated Amendments Cause Setback
U.S. Bankruptcy Court Judge Allan Gropper was informed on Thursday by General Growth that the company requires an extension to finalize its bankruptcy exit plan. The reason cited was the complexity and substantial size of over $6.5 billion in amendments from its associates, Fairholme Capital Management and Brookfield Asset Management.
Revised Filing Timeline
Initially slated for filing with the court by Friday, General Growth's revised plan is now expected to be ready by the end of next week. Consequently, the hearing date, previously set for April 13, is likely to be pushed back, with April 15 emerging as a possible alternative, as hinted by Judge Gropper.
Comparing Offers: Simon Property Group vs. Fairholme and Pershing
According to a recent Morningstar report, Simon Property Group's offer stands at $10 billion, averaging approximately $9 per share. In contrast, the offer from Fairholme and Pershing proposes $10 per share for the restructured General Growth and an additional $5 per share for General Growth Opportunities, a new entity. Notably, Raymond James analyst R.J. Milligan highlighted that the two offers cannot be directly compared due to differences in the grouped estates.
Market Reaction
On Thursday, General Growth's shares on the New York Stock Exchange saw a 2.5% increase, rising 40 cents to $16.24. Conversely, Simon Property Group's shares dipped 1% to $84.79.