additional amendment to por filed on saturday:
note that ggp anticipates having $178.9 million of cash on hand at the end of 2010. if this amount is after dividends and dividends are paid as anticipated for 2009 (10% cash and 90% stock) then the $178.9 would represent cash available after the 10% portion for the 2010 dividend has been paid.
whatever the numbers come out to be, the point is that ggp is projecting positive cash flow for 2010 which means to me that dividends will continue to be paid in 2010 and they will have the money to do so.
following is a cut and paste of the new filing which was made saturday morning by kirkland and ellis:
Exhibit 3 – Financial Projections
Capitalized terms used in this Exhibit 3 are defined in Appendix A to the Disclosure
Statement, as supplemented or amended.
For the purpose of demonstrating that the Plan satisfies the feasibility
standard described in Section VIII.A.3 of the Disclosure Statement, the Plan Debtors
provide the attached consolidated cash flow analysis and the following narrative
description.
The Plan Debtors estimate that the Emergence Costs are approximately
$428 million. Of this amount, $319.8 million is associated with the mortgage and
mezzanine debt restructuring, including extension fees, servicer fees and expenses, catchup
amortization payments, accrued interest, the funding of certain escrows and other
expenses. A further $108.2 million is associated with distributions related to prepetition
claims against the Plan Debtors. The Plan Debtors are expected to fund these
restructuring costs and Plan distributions predominately from funds generated by the Plan
Debtors since the onset of their Chapter 11 Cases, with additional support from excess
liquidity of GGP LP. These amounts are the best available estimates as of the date of this
Disclosure Statement supplement and are subject to change based on the final number of
Plan Debtors included or excluded from the Plan and other factors.
As described in Section II.B of the Disclosure Statement, the Plan Debtors
engaged in lengthy negotiations with the Secured Debt Holders. In connection with those
negotiations, in August 2009 the Plan Debtors completed the preparation of long-term
project-level financial projections and provided those projections to the Secured Debt
Holders and other key constituencies in the Chapter 11 Cases, including the professionals
for the Creditors’ Committee and the Equity Committee. The project-level projections
completed in August 2009 show that the Plan Debtors will have cash flow well in excess
of the amounts necessary to satisfy their principal and interest payments under the
restructured secured loans and all other cash needs through 2014. The Plan Debtors’ cash
flow in 2010 is estimated to be approximately $47.4 million less than their cash needs,
due primarily to the $150 million pay-down of the secured debt on the Ala Moana
property as negotiated as part of the restructuring of that entity’s property level secured
loan. GGP expects to fund this shortfall out of excess liquidity of GGP LP. The Ala
Moana pay-down also can be deferred beyond 2010.
The consolidated cash forecast attached shows that GGP has sufficient
cash to fund the Emergence Costs of the Plan Debtors as well as the estimated $47.4
million shortfall in 2010. On a pro forma basis including all estimated Emergence Costs
and other payments required by the Plan, GGP projects it will have $178.9 million in
cash available at the end of 2010.
The Plan Debtors do not, as a matter of course, publish business plans,
strategies, projections, anticipated financial positions, or the results of operations.
Accordingly, the Plan Debtors do not anticipate that they will, and disclaim any obligation to, furnish updated projections or cash flow forecasts, to holders of Claims or
Interests in the Plan Debtors after the Confirmation Date, or to include such information
in documents required to be filed with the SEC (if any) or otherwise make such
information public. The Plan Debtors do, however, continue to update their projections
to reflect actual results, business developments, changes in assumptions, and refinements
to projection methodologies; future projections are likely to differ from those set forth
herein. GGP anticipates incorporating such future financial projections in information
that is delivered to certain constituencies for purposes of the remaining Chapter 11 Cases.
Creditors should not rely on the projections or cash flow forecast as a
representation or guarantee of future performance; they are an estimate done as of August
2009 for purposes of demonstrating feasibility of the Plan and actual results could vary
significantly. The projections and cash flow forecast have not been prepared on the basis
of Generally Accepted Accounting Principles, the rules of the SEC, or the American
Institute of Certified Public Accountants. The projections and cash flow forecast have
not been audited or reviewed by independent public accountants
