Judge: GGP can keep mall in filing

A New York judge denied a request this week by lenders to remove Providence Place from its owner’s bankruptcy case.
Lenders, including ING Clarion, Helios AMC, KBC Bank N.V. and Metropolitan Life Insurance Co., argued that mall operator General Growth Properties Inc. improperly included the mall in its April Chapter 11 filing. Lenders told the judge that the Providence mall remained profitable and should not be included in GGP’s reorganization plan.
In a statement Tuesday, the Chicago-based company hailed the decision to deny the request.
“We are pleased with the court’s decision and we look forward to moving ahead with the restructuring of the company,” GGP CEO Adam Metz said.
The case in the Bankruptcy Court of the Southern District of New York involves about 166 regional shopping centers operated by GGP or its subsidies. But the proceedings have been largely invisible to shoppers, with facilities operating as normal.
GGP did reduce Providence Place’s operating hours shortly after the company filed for bankruptcy, closing the mall a half-hour earlier on weekdays and an hour earlier on Sundays.
On its Web site, GGP says it hopes to leave bankruptcy protection “as quickly as possible,” but says it is too early to pin down a specific date.