Baltimore Inner-Harbor
General Growth Properties, the big real estate investment trust that filed for bankruptcy today, expanded through acquisitions and a few years back bought The Rouse Co., which developed places like South Street Seaport in NYC and the inner-harbor area of Baltimore. A crushing debt-load and inability to refinance did General Growth in. Desperate companies have to do desperate things to stay alive. And that opens the door for opportunists like hedge fund manager William Ackman, who runs Pershing Square Capital Management. Ackman owns outright about 7.5% in General Growth stock and has swapss with banks that gives him another 18.1% in economic benefit. Ackman today offered $375 million in Debtor-In-Possession (DIP) financing to General Growth at remarkable terms.
