GGP on track to refinance two Las Vegas Malls

Chicago General Growth Properties has begun the process of confirming Chapter 11 plans for two of its Las Vegas mall properties by restructuring $896 million in mortgage loans.

According to reports, General Growth reached agreement with lenders to restructure the $646 million mortgage on the Fashion Show Mall and the $250 million mortgage on Shoppes at Palazzo, both in Las Vegas.

Indianapolis-based Simon Property Group said it is in talks with Blackstone Group LP about joining its group to provide financing for General Growth to confirm a reorganization plan.

General Growth is scheduled for a hearing on May 5 for the bankruptcy judge in New York to approve a process for selecting investors to provide equity and debt financing required for implementing a Chapter 11 plan for the holding company.