The owner of the Glendale Galleria plans to emerge from Chapter 11 bankruptcy as two companies in October, the company announced Monday.
General Growth Properties Inc., which filed for bankruptcy last year, announced it has received assurances for as much as $8.5 billion in new capital and will split into two firms. One, called the “New GGP,” would remain focused on owning and operating shopping malls. The other, Spinco, would control master-planned and mixed-use communities, as well as mall development projects.
“The New GGP will remain the second-largest shopping mall owner and operator in the country,” Adam Metz, the Chicago-based firm’s chief executive, said in a statement. “With our restructured balance sheet and clear strategic focus, GGP will emerge from Chapter 11 well-positioned to build on our leadership position in the industry.”
The Glendale Galleria will be part of New GGP, David Keating, a General Growth spokesman, said in an e-mail.
“Our Chapter 11 bankruptcy has had no impact on any of our properties, including Glendale Galleria,” he said. “Glendale Galleria is no doubt a fantastic center. We are quite pleased with its performance. We will continue our commitment of making it a destination of choice for many Southern Californians.”
The Burbank Town Center, which is operated by General Growth, would not be affected by the restructuring, he added.