Bankrupt Developer of Elk Grove Promenade Gets Green Light On $47.5 Million In Executive Bonuses
A bankruptcy judge approved a request to award up to $47.5 million in bonuses for managers of Chicago-based General Growth Properties, dev...
https://www.elkgrovenews.net/2009/10/bankrupt-developer-of-elk-grove.html
A bankruptcy judge approved a request to award up to $47.5 million in bonuses for managers of Chicago-based General Growth Properties, developers of the unfinished Elk Grove Promenade shopping center.
GGP’s April Chapter 11 bankruptcy filing was the real estate collapse in U.S. history. The developer had a staggering $27 billion in debt.
U.S. Bankruptcy Judge Allan Gropper in Manhattan approved the request yesterday that will permit the company to pay out $47.5 million in bonuses over the next two years. The agreement will also allocate up to $11.6 million for the top 12 executives with the balance for 46 other executives.
Michael Stamer, attorney for unsecured creditors, said the bonus plan was approved by all parties following "spirited negotiations." Additionally up to $5 million in bonus could be awarded if GGP emerge from bankruptcy by June 30.
Construction of the Elk Grove Promenade abruptly stopped over 15 months ago. It is not know when construction will resume on the beleaguered project.
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Fantastic news! These managers are clearly the only people capable of steering GGP back to black. They are the only people who really know the inner workings of the business of commercial sprawl. Only they can get GGP out of bankruptcy faster and therefore resume the important work of getting our beautiful new mall providing high quality jobs and much-needed tax revenues for our city.
They certainly deserved this approval. I am so glad for them and our city. A win-win!
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