New York Bankruptcy Court Holds Remote Special Purpose Subsidiaries Eligible as Debtors, Denies Dismissal of SPE Chapter 11 Filings by General Growth Properties
31 August 2009
Mayer Brown Legal Update
On August 11, 2009, the US Bankruptcy Court for the Southern District of New York denied five motions to dismiss bankruptcy cases filed by certain bankruptcy remote, special purpose subsidiaries (SPEs) of General Growth Properties, Inc. (GGP). The motions were filed by or on behalf of secured lenders to the SPEs (Movants) who argued that the bankruptcy filings were inconsistent with the bankruptcy remote structures that they had negotiated with GGP.