Elk Grove Promenade Developer, Lenders Rework Staggering Debt

Chicago-based General Growth Properties (GGP), the developer of the half-constructed Elk Grove Promenade Mall, has come to terms with some of its lenders to restructure $8.9 billion in debt. GGP filed the largest Chapter 11 real estate bankruptcy in U.S. history last April after it mounted over $27 billion in debt.

Under the plan, 70 of the company’s 166 malls will be able to exit bankruptcy. Lenders agreed to extend due dates on the properties to January 2014 to as far as 2018.

The agreements must be approved by the bankruptcy court.

Competitor looks to cherry pick prime GGP properties

While GGP struggles to restructure its debt, one of its competitors is reportedly eying some of GGP’s prime properties.

Simon Property Group, the nation’s largest mall operator, has reportedly hired institutional investment advisors to explore the purchase of GGP assets. There is no word on which specific properties Simon was interested in.