CHICAGO - General Growth Properties (NYSE: GGP), owner of the Foothills
Mall, could be a step closer to emerging from bankruptcy after receiving
an offer for a $3.9 billion equity boost.
Fairholme Capital Management LLC and Pershing Square Capital Management
proposed to commit just over $3.9 billion of new equity capital in
exchange for shares valued at $15 per share. Fairholme is one of the
largest unsecured creditors of the GGP bankruptcy, and Pershing is one
of the company's largest equity holders and also an unsecured creditor.
The proposal is subject to approval by the GGP board of directors and
the U.S. Bankruptcy Court.
The company also recently received a proposal from Brookfield Asset
Management Inc. for a $2.6 billion boost, bringing the total committed
equity capital to $6.5 billion if the proposals are accepted.
The announcement of the newest proposal comes days after GGP's
announcement that its stock had resumed trading on the New York Stock
Exchange. The stock was up 14 cents to $14.69 in morning trading.






