I just went to Wallstreetjournal.com , clicked on Business,typed in General Growth Properties and the article comes right up. It is real folks. The article is real. Whether or not they have made an error on some of these properties may be in question but the article is real. Again, I see this as a major positive. This may even mean now that all the SECURED'S are finally done. Bids may start to come in now.
I would not be surprised if exiting BK for these entities was a legal requirement for the deed in lieu. Perhaps the deed in lieu can not be executed by a company in BK, so before the property could be turned over to the lender, the entity had to exit BK. (not a lawyer so I do not know for sure)
Anyway, as has been said here before, none of these 13 centers appear to be core properties and severing them from the GGP portfolio appears to be a good thing.
Clearly the values of the malls in Michigan and the SFO area have to be less than the debt. If the lender was unwilling to forebare interest and/or reduce the debt balance; then giving the keys back probably makes a lot of sense.
I remember a couple of months ago someone from management, in response to a question in a TV interview, stated that the worst occupancy percentage was about 40 or 50 percent. Malls in that shape very well may be under water and candidates for "give 'em the keys".
It also may be part of a sale process as Hawk says is a possibility.
In any case it will move us farther towards the end of the secured saga.
No tragedy here folks. Maintain speed and move on.