The nations largest mall operator filed for bankruptcy about two monthes ago. Activist investor Bill Ackman purchased a large stake in the common equity of the company. His argument is that the company is not insolvent but solvent with a liquidity problem. With assets of 29 billion and liabilities of 27 billion, general growths equity could survive if the company restructures under chapter 11 bankruptcy. It will be interesting to see how this bankruptcy plays out because it will have a lasting affect on the commercial real estate market and the CMBS market. Stay tuned.

General Growth Properties: ggwpq.pk

Advertisements