General Growth Properties, the second-largest US mall owner, has won permission from a bankruptcy judge to restructure about $10.25bn in debt at some of its shopping centres and office buildings.

The Chapter 11 plan approved yesterday by US Bankruptcy Judge Allan Gropper extends the company’s various loans, making none due before 2014, according to a company statement distributed by Business Wire. The plan covers 103 properties and 87 loan agreements. It leaves six more sets of properties, each with a number of leases, under court protection, Anup Sathy, a lawyer for the company, told the judge.

Confirmation of General Growth’s plan is significant because it resolves concerns about potential bankruptcy problems at other real estate companies that have also tried to shield assets using special-purpose entities, Gropper said in court earlier yesterday.

bloomberg.com