General Growth Says Blackstone Plans $500M Investment
- Aug 19, 2010
August 19, 2010
By Allison Landa, News Editor
Bankrupt mall operator General Growth said Wednesday that the Blackstone Group plans to invest $500 million in the company’s shares.
The announcement, which was made in a regulatory filing, added that the investment will take place after General Growth emerges from bankruptcy. Blackstone will receive new common stock in Spinco, a new company to be formed after the emergence from bankruptcy.
General Growth filed for bankruptcy in April 2009. At the time, it listed assets of $29.6 billion and debts of $27.3 billion. Earlier this year a consortium of Blackstone, The Fairholme Fund and Pershing Square Capital Management said they would provide as much as $8.5 billion to finance the company’s bankruptcy emergence.