NY Entitled To $11.5M For GGP Loan Default, 2nd Circ. Hears

Law360, New York (November 26, 2012, 7:12 PM EST) -- New York state on Monday urged the Second Circuit to uphold a decision giving it an extra $11.7 million from General Growth Properties Inc. after the mall operator went bankrupt and defaulted on a loan, arguing that the restructured GGP could afford it.

The state, whose retirement fund loaned GGP $254 million, is entitled to get extra interest money promised to it in the loan documentation, a lawyer for the state said at oral arguments in Manhattan.

The state would normally have been entitled to $25.3...
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