UPDATE 1-Judge OKs more General Growth loan restructurings

* Judge approves reorganization for 7 more properties

* Shares rise 19.7 pct

NEW YORK Dec 22 (Reuters) - A judge overseeing the bankruptcy of mall operator General Growth Properties GGWPQ.PK approved a plan on Tuesday that would release an additional seven properties from Chapter 11 bankruptcy protection and pave the way for the company to focus on emerging from bankruptcy next year.

Judge Allan Gropper confirmed the plan between the No. 2 U.S. mall operator and creditors to extend $1.3 billion of loans on the properties. This comes on top of last week's hearing, in which Gropper approved the restructuring of $10.25 billion of loans, covering 103 properties, including 85 regional shopping centers, 15 office properties and three community centers.

The company is working to restructure the last $3.35 billion of its $14.9 billion in property level debt. With the property-associated debt restructured, those entities could emerge from bankruptcy within a couple of months.

Shares of General Growth closed up 19.67 percent, or $1.80, at $10.95.

The company's board is continuing to evaluate alternatives, including a public offering of General Growth equity, to reduce overall leverage and raise the capital necessary to emerge from bankruptcy in 2010.

Chicago-based General Growth also has about $7 billion in corporate-level unsecured debt. The company is considering converting corporate level debt into equity, an often-used bankruptcy resolution.

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. It became the biggest real estate failure in U.S. history when it filed for bankruptcy protection in April after the credit crisis dried up sources of loans for maturing debt. (Reporting by Chelsea Emery and Ilaina Jonas)