March 10th, 2010General Growth offered $3.9B infusion
Carolina Place mall owner General Growth Properties Inc. has received proposals to receive $3.9 billion from two investment firms. The company hopes a capital infusion will help speed its exit from Chapter 11 bankruptcy protection.
Pershing Square Capital Management of New York, one of General Growth’s largest equity holders, and Fairholme Capital Management of New Jersey, one of its largest unsecured creditors, offered the funds at a value of $15 per share.
General Growth, the nation’s second-largest mall owner, believes it now has “substantially all of the cash required to fulfill the company’s capital needs in connection with its emergence from bankruptcy.”
General Growth (NYSE:GGP) filed for bankruptcy in April.
A new round of financing would follow Brookfield Asset Management’s agreement to provide the company with $2.6 billion in equity. Both agreements need approval from General Growth’s board and U.S. Bankruptcy Court.
In connection with the proposed deal, Pershing Square founder and trustee Bill Ackman has resigned from General Growth’s board. Indianapolis-based Simon Property Group (NYSE:SPG), the nation’s largest mall owner, has criticized Ackman’s involvement with both sides. General Growth rejected Simon’s $10 billion acquisition bid in February.
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