General Growth is seeking forbearance from some of its bondholders to hold off on defaulting until Dec. 31, 2009. It is asking bondholders to hold off requesting payment as it attempts to refinance billions in debt and avoid bankruptcy.
General Growth Properties, Inc.announced that its subsidiary, The Rouse Company LP (“TRCLP”), launched a solicitation today to obtain consents from the holders of TRCLP's unsecured notes (five series with an aggregate outstanding principal amount of approximately $2.25 billion at December 31, 2008) to forbear from exercising remedies with respect to various payment and other defaults under the notes through December 31, 2009.
“This is a significant step in our ongoing efforts to reach a plan with our lenders to develop a long-term solution to the Company's maturing debt” said Adam Metz, Chief Executive Officer. “We developed this forbearance working together with the financial and legal advisors to an ad hoc committee of holders of TRCLP Notes the members of which hold, in the aggregate, approximately 41% of TRCLP Notes.