Comments on: General Growth Properties files Chapter 11 http://alwaysupward.com/blog/general-growth-properties-files-chapter-11/ Success only runs one direction.... Thu, 09 Sep 2010 17:18:55 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Gregg Marshall http://alwaysupward.com/blog/general-growth-properties-files-chapter-11/comment-page-1/#comment-763 Gregg Marshall Wed, 22 Apr 2009 15:21:46 +0000 http://alwaysupward.com/blog/?p=2130#comment-763 Chapter 11 Bankruptcy doesn't mean your landlord is automatically going out of business or that you'll be out on the street. Many of the large airlines have at least one Chapter 11 in their history and are still flying. K-Mart filed bankruptcy in 2002. Based on the articles, it does mean that General Growth can continue to try to restructure their debt. Having said that, another option Chapter 11 gives General Growth is the ability to go through their contracts one by one and accept or reject them. So if they have a few "really bad apples," in their portfolio (e.g. a lot of debt and very few tenants), it wouldn't be surprising if they rejected those contracts... But even then whomever ends up with those properties (most likely the entity with the loans) would want them to succeed and be easier to sell. <em>Editor’s note: The post was not intended to suggest Chapter 11 is an automatic closure scenario, but to show that it does present potential change and options for all concerned.</em> Chapter 11 Bankruptcy doesn’t mean your landlord is automatically going out of business or that you’ll be out on the street.

Many of the large airlines have at least one Chapter 11 in their history and are still flying. K-Mart filed bankruptcy in 2002.

Based on the articles, it does mean that General Growth can continue to try to restructure their debt.

Having said that, another option Chapter 11 gives General Growth is the ability to go through their contracts one by one and accept or reject them. So if they have a few “really bad apples,” in their portfolio (e.g. a lot of debt and very few tenants), it wouldn’t be surprising if they rejected those contracts… But even then whomever ends up with those properties (most likely the entity with the loans) would want them to succeed and be easier to sell.

Editor’s note: The post was not intended to suggest Chapter 11 is an automatic closure scenario, but to show that it does present potential change and options for all concerned.

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