Mall operator General Growth Properties Inc. filed a plan to exit bankruptcy that includes a $6.55 billion infusion from Brookfield Asset Management, Pershing Square Capital Management and Fairholme Capital Management, and values the company at $15 a share.
But General Growth, which rejected a takeover offer of about $9 a share from Simon Property Group Inc. in February, is also keeping its options open.
The plan to exit bankruptcy, filed in Manhattan bankruptcy court late Wednesday, includes the formation of General Growth Opportunities, a new company that would own the firm’s master planned communities and some of its landmark assets, including the South Street Seaport in New York.
“This proposed transaction represents an important step toward our goal of creating the greatest value for all our stakeholders,” said Adam Metz, chief executive officer. “It provides for a $6.55 billion investment at a value of $15 per share and par plus accrued recovery for unsecured creditors, while providing [General Growth] with the flexibility to explore even better alternatives for an emergence transaction.”
Shares of General Growth slipped 0.9 percent to $15.95 Thursday.
The S&P Retail Index rose 0.4 percent, or 1.82 points, to 451.61, as the Dow Jones Industrial Average advanced 0.7 percent, or 70.44 points, to 10,927.07.
• Wet Seal’s Capital Streamlining: The Wet Seal Inc. struck a deal to pay off secured convertible notes due 2012 and convert Series C convertible preferred stock to common stock, which gives the retailer more flexibility while streamlining its capital structure.
Wet Seal gave an investor who held some of the securities a $700,000 cash payment as incentive to make the switch. The firm also will take a $1.1 million noncash interest charge in the first quarter.
“We are pleased to have retired the last of our outstanding notes and preferred stock, which simplifies our balance sheet and eliminates several limitations previously placed on us by the notes indenture, including restrictions on our ability to repurchase our common stock,” said Ed Thomas, ceo.
Wet Seal’s stock dipped 0.2 percent to $4.75 Thursday.
• Fourth Time the Charm for Talbots?: The Talbots Inc. extended a warrant exchange offer by one day Thursday, pushing the deadline back for the fourth time. The exchange needs to be completed before Talbots can merge with BPW Acquisition Corp. As of the previous deadline, at 6 p.m. Wednesday, 87.9 percent of the warranted issued when BPW went public were tendered. Ninety percent are needed for the merger to proceed.
Shares of Talbots rose 4.8 percent to $13.58.
• Offshore Increases: International markets moved up Thursday, with the CAC 40 up 1.5 percent to 4,034.23 in Paris, the Hang Seng Index up 1.4 percent to 21,537 in Hong Kong, the Nikkei 225 ahead 1.4 percent to 11,244.40 in Tokyo and the FTSE 100 advancing 1.2 percent to 5,744.89 in London.
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye