General Growth Agrees to New Bondholder-Backed Loan

Summary


NEW YORK (Reuters) - General Growth Properties Inc. has agreed to a new bankruptcy loan from a group of investors including some of its bondholders that will replace the debtor-in-possession financing from Pershing Square Capital Management hedge fund manager William Ackman, according to court documents.

The documents, which were filed on Wednesday [May 6], say the new loan offers better terms. The company, which has been using cash to finance itself since filing for bankruptcy on April 16, is seeking final court approval for the DIP financing on Friday.

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General Growth Agrees to New Bondholder-Backed Loan

Mr. Ackman, who owned 24% of the company's eq...

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