The owner of the Glendale Galleria plans to emerge from Chapter 11 bankruptcy as two companies in October, officials announced Monday.
General Growth Properties Inc., which filed for bankruptcy last year, also announced that it had received assurances for as much as $8.5 billion in new capital, which would pay its debts in full.
Out of the two-firm split, one called the "New GGP," would continue to own and operate shopping malls. The other, Spinco, would oversee master-planned and mixed-use communities, as well as mall development projects.
An Aug. 19 U.S. Bankruptcy Court hearing has been scheduled to consider the plan.
"The New GGP will remain the second-largest shopping mall owner and operator in the country," Adam Metz, the Chicago-based firm's chief executive, said in a statement. "With our restructured balance sheet and clear strategic focus, GGP will emerge from Chapter 11 well-positioned to build on our leadership position in the industry."