GGP Sees Future After Model Transformation

Kirkland represents General Growth Properties in their emergence from Chapter 11 bankruptcy protection.

"This success story – in what constitutes the first major restructuring of commercial mortgage-backed securities – could, GGP's bankruptcy judge said, act as 'a model as to value that can be preserved for the benefit of all stakeholders'.

'This should permit other CMBS restructurings to happen out of court,' says James Sprayregen, partner at Kirkland & Ellis, pointing to the approximately $700bn securities due to mature before 2017. 'The very fact that people now know it can be done in court will help them reach agreement out of court.'

For Mr Sprayregen, the lessons of GGP are simple. 'Don't assume anything, think creatively and read the documents. Conventional wisdom was that you couldn't do this.'"

This article appeared in its entirety in the November 8, 2010 edition of Financial Times.