Law firm Wilmer Cutler Pickering Hale and Dorr LLP on Monday sent a letter to General Growth and one of its outside law firms explaining that it represents holders of 25% of the company's $395 million in bonds due last March 16 that weren't paid, according to people familiar with the matter. Bondholders must collectively represent at least 25% of a given bond issue to compel a trustee to act on their behalf.
The GGP situation continues to be interesting. The malls are cashflowing and low-leveraged for the most part, while the company is highly levered and is swamped with maturities that it can't refi because there is no market to refi into. I continue to believe that there are recent investors (maybe Ackman) who have bought the longer-dated corporate debt for pennies, only to force a bankruptcy where they are likely to get paid back near par.