PROVIDENCE – General Growth Properties Inc., the bankrupt owner of the Providence Place mall, won approval in bankruptcy court Tuesday to restructure about $10.3 billion worth of mortgage loans – but the plan doesn’t include Providence Place.
Chicago-based General Growth acknowledged Wednesday that it is still seeking permission from certain creditors to restructure the mortgage loan at Providence Place. The loan’s size was not immediately known.
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“Senior creditors have signed off, but we have not yet gotten the support from others,” James Graham, a spokesman for General Growth, told Providence Business News. “The discussions with the Class B note holders and mezzanine holders are ongoing.”
Providence Place Holdings LLC, which holds the 2 million-square-foot mall, was initially supposed to be included in the loan restructuring approved Tuesday, but General Growth said the subsidiary was one of 26 that failed to secure approvals from all creditors. Those companies control 10 properties with mortgage loans worth $1.7 billion.
General Growth said the subsidiaries for which it has negotiated extended loan terms would exit bankruptcy “as soon as practicable.”
The Chapter 11 plan approved by U.S. Bankruptcy Judge Allan L. Gropper in New York extends 87 loans involving 103 General Growth properties so that none are due before January 2014.
In addition to extending loan maturities, most secured lenders who agreed to the plan will keep interest rates at pre-default levels. They also agreed to waive fees and the right to accelerate debt, according to Bloomberg News.
“Confirmation of these plans of reorganization is a monumental step towards completion of GGP’s overall corporate restructuring,” said Thomas H. Nolan Jr., GGP president and chief operating officer. “As a result of these plans, completed just eight months after our chapter 11 filing, we have created the foundation for the long-term capital structure for GGP and the basis for emerging our remaining debtors from bankruptcy. We are hopeful that we will reach agreements with our remaining secured mortgage lenders expeditiously.”
In addition to Providence Place, General Growth also owns the 1.04 million-square-foot Silver City Galleria in Taunton. Silver City’s status was unclear Wednesday.
General Growth also manages the 700,000-square-foot Swansea Mall, which is owned by New York-based Carlyle Development Group Inc.
