From our private database of 28,500+ case briefs...
In Re General Growth Properties, Inc.
United States Bankruptcy Court for the Southern District of New York
409 Bankr. 43 (2009)
General Growth Properties, Inc. (GGP) (debtor) was a real estate investment-trust corporation with hundreds of project-level subsidiaries that owned shopping centers, master-planned communities, and office buildings. GGP centralized construction, leasing, management, property maintenance, and cash management but created separate subsidiaries as special-purpose entities (SPEs) liable for mortgages on individual properties that were obligated to maintain separate identities to insulate each subsidiary from the debts of affiliates and prevent default. The SPEs had operating agreements that required independent managers to consider the interests of GGP and its creditors under Delaware law and required all managers to consent before an SPE could file bankruptcy. After the 2008 financial crisis, GGP suffered financially although several of its high-end shopping centers remained profitable. When GGP filed for bankruptcy reorganization, the solvent subsidiaries tried to avoid following suit and their assets being used to finance GGP’s reorganization, but some solvent subsidiaries nonetheless filed for reorganization shortly after GGP. Six entities moved to dismiss the individual bankruptcies as filed in bad faith, arguing that the SPE or bankruptcy-remote structure of the project-level debtors required the court to analyze the financial distress of each individual debtor separately in determining whether an individual filing was in good faith instead of analyzing GGP’s distress as a whole.
Rule of Law
Holding and Reasoning (Gropper, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 545,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 545,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 28,500 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.