Lessons From General Growth Properties

Law360, New York (August 28, 2009, 2:55 PM EDT) -- The bankruptcy of real estate investment trust General Growth Properties Inc. (GGP) warrants attention not only because it is the largest real estate bankruptcy case ever filed, but because of the shadow it cast on the commercial real estate financing world, and in particular the already besieged market for commercial mortgage backed securities (CMBS).

In an Aug. 11, 2009, decision, the bankruptcy court denied several motions to dismiss certain of the debtors’ cases, essentially determining that the “bankruptcy remote” nature of their structures does not render...
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