Tuesday, April 14, 2009

Not all GGP bondholders are so patient

Or so says Wilmer Cutler Pickering Hale and Dorr LLP, the lawyers who say they are representing a bunch of bondholders demanding repayment...or else. You can read about it here and here.

There are some people who might be happy about this, including possibly William Ackman. That said, I find this quote telling:

The bondholders' action pushes General Growth closer to a bankruptcy filing but doesn't mean one is imminent. A trial spurred by the bondholders' lawsuit likely would take months to play out. Meanwhile, General Growth previously pledged to work with its unsecured lenders to craft an out-of-court restructuring of its balance sheet by the end of June. If General Growth meets that commitment, the trial might not be needed.
Is there more here than meets the eye, or is this just a desire to be repaid?

(H/T Traffic Court.)