General Growth may pay $432.2 mln for debt deals

* Agreements estimated to cost $432.2 mln

* Costs could go higher with more agreements

* Shares trade at $9.80

By Ilaina Jonas

NEW YORK, Dec 8 (Reuters) - General Growth Properties'
GGWPQ.PK recent agreements with lenders holding a majority of
its property debt are expected to cost the bankrupt mall owner
$423.2 million, according to court documents filed on Tuesday.

The price tag could go higher if more agreements with
mortgage and mezzanine lenders are cemented under the
reorganization plan which is scheduled for a hearing next week
before a U.S. bankruptcy court judge.

Last week, Chicago-based General Growth filed a plan of
reorganization to repay loans on 92 properties, including 77
shopping centers, three office buildings, 10 smaller shopping
developments and two industrial properties.

Each of the entities involved in the loans will have to
approve the agreements, and U.S. bankruptcy Court Judge Allan
Gropper approved sending the documents to those creditors,
court papers showed.

Of the $423.2 million, $315.8 million is related to
mortgage and mezzanine debt restructuring, which includes
extension fees, servicer fees and expenses, back-owed
amortization payment, accrued interest, funding of certain
escrow accounts and other expenses.

Another $107.4 million is associated with paying claims
laid before the April bankruptcy filing.

"These amounts are the best available estimates as of the
date of this disclosure statement ... and are subject to change
based on the final number of plan debtors included or excluded
from the plan and other factors," the company said in court
papers.

Under the plan filed with the court, lenders agreed to hold
the current interest rate on the loans and extend the date at
which they mature. The weighted-average maturity date under the
deal is extended by 5.2 years.

The company continues to negotiate with holders of the
remaining $5.2 billion of its $14.9 billion in property-level
debt included its bankruptcy filing. The company has about $7
billion more in unsecured debt.

General Growth owns or has an interest in more than 200
malls, including Fashion Show in Las Vegas, Ala Moana Center in
Hawaii, and Faneuil Hall Marketplace in Boston. When it filed
for bankruptcy it also dragged in 166 of its properties.

The second-largest U.S. mall owner became the biggest real
estate failure in U.S. history when it filed for bankruptcy in
April after the credit crisis dried up mortgage sources.

General Growth filed for protection from creditors when it
was unable to refinance maturing debt, even though it had
$29.56 billion in assets. Some of its other entities, including
properties it owns with other investors in joint ventures, were
not included in the bankruptcy.

General Growth has the exclusive right to come up with its
own reorganization plan by February.

Last month, Simon Property Group (SPG.N), the No. 1 U.S.
mall owner, said it hired investment adviser Lazard Ltd and law
firm Wachtell Lipton Rosen & Katz to help explore a possible
bid for all or part of General Growth. Canadian-based
Brookfield Asset Management (BAMa.TO) also is interested in the
company and has been buying up General Growth unsecured debt,
The Wall Street Journal reported last week.

Shares of General Growth on Tuesday closed up 36 cents at
$9.80.

The case is In re: General Growth Properties Inc, U.S.
Bankruptcy Court, Southern District of New York, No. 09-11977.
(Reporting by Ilaina Jonas, editing by Matthew Lewis)