Earlier, we wrote about Microsoft having good luck in the credit market. Turns out they’re not the only one – this time it’s REIT General Growth and the lenders are lining up to furnish DIP financing.
Three guesses which firm’s door they’re beating a path to.
Of course, only Weil Gotshal could get investors fighting to lend money to a bankrupt company, but that’s just what’s happening, according to the WSJ. Don’t forget, Weil was a latecomer to the party. In January, General Growth dumped Sidley Austin for Weil and Kirkland.
General Growth is one of the few high-profile bankruptcies blog hero Harvey Miller isn’t handling personally. He’s allowed his nominal boss, Marcia Goldstein (Cornell BA ‘73, JD ‘75), chair of the Business, Finance & Restructuring department, to take the lead on this one.
These are strange times, but for some reason, General Growth is a hot commodity.
In the General Growth showdown, activist investor Bill Ackman, who has racked up a sizeable stake in General Growth, is facing off a group of investment funds that includes Farallon Capital Management and Luxor Capital Group. General Growth has been bouncing between the two, first agreeing to take money from Ackman, then the funds, and then Ackman again. They should finally settle Monday night.
Companies in bankruptcy these days are lucky to get offers from one lender, never mind two, which puts lenders in the driver’s seat. But the bidding for General Growth allows the mall owner to squeeze out a better deal for itself. The back and forth so far has already upped the financing commitment from $375 million to $400 million and lengthened the maturity of the loan to two years, among other changes.
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