GGP Announces Results Of Unsuccessful Consent Soliciation

And at the same time extends the deadline of its inevitable fate yet again, this time to Friday, March 27. Inevitable because in the original weekly extension from Friday 13th to Friday 20th, only 1% of incremental 3.625% bondholders have agreed to the exchange (41% at March 13, versus 42% at March 20), and 58% still are willing to see the company file for bankruptcy.

This is the full breakdown of consenting classes, where both 2009 notes and one of the 2013 notes still do not pass the consent threshold:

3.625% Notes due 2009: 42.0%
8% Notes due 2009: 67.4%
7.20% Notes due 2012: 85.0%
5.373% Notes due 2013: 69.1%
6 3/4 Notes due 2013: 79.5%

The management of course spun it to seem like everything is under control:

“In light of the fact that during the initial extension of the consent solicitation, we received an increased level of consents from bondholders in all series and due to difficulties that we understand some holders experienced in obtaining the consent solicitation materials, we have decided to extend the solicitation for an additional period,” said Adam Metz, CEO. “We continue to believe that giving the Company time to work with its creditors to develop a comprehensive restructuring plan without the threat and distraction of ongoing defaults is in the best interests of the Company and all of its constituencies.”

This looks like one slow, long, painful death as GGP bleeds cash by a thousand cuts.