The Wall Street Journal is reporting that General Growth Properties, the 2nd-largest mall owner in the US (including Boston’s Faneuil Hall), has dropped Sidley & Austin in favor of Weil Gotshal and Kirkland & Ellis. General Growth has not filed for bankruptcy yet, but WSJ’s sources indicate that the REIT is struggling to restructure its $27 billion in debt. Paul Weiss is representing holders of $600 million of notes that come due in March and April.
While neither the company nor the firms returned calls for comment, WSJ speculates that the change relates to James Sprayregen‘s (Michigan BA ’82, Illinois JD ’85) return to Kirkland from a three-year stint at Goldman Sachs. General Growth is sparing no expense on representation: Goldman, Morgan Stanley and Deutsche Bank all have advisory roles.
Kirkland is representing a number of General Growth’s subsidiaries but was conflicted out of representing the entire organization. The balance is going to Marcia Goldstein (Cornell BA ’73, Cornell JD ’75), chair of the Business, Finance & Restructuring department at Weil (she gets to boss Harvey Miller around? we don’t think so) and Gary Holtzer (Cornell BA ’86, Cardozo JD ’90).
Why the breakup? Is General Growth about to file and wants different representation or was it already unhappy with the way things were going with Sidley and Sprayregen just provided the catalyst?
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