Hughes heirs object to General Growth plan
A group representing heirs of Howard Hughes filed an objection on Friday to a plan for General Growth Properties Inc, to emerge from bankruptcy as a stand-alone company, saying it pays investors who would bankroll that plan at their expense. The Hughes heirs, whose ties to General Growth to its 2004, acquisition of Rouse Cos, said General Growth "deliberately" understated the value of the warrants that are included in a deal to finance General Growth's exit. Brookfield Asset Management Inc, Pershing Square Capital and Fairholme Capital Management have agreed to put up $6.55 billion in exchange for 65 percent of the company, according to court documents. The deal also includes giving the three financiers 120 million warrants for future stock. General Growth has valued the warrants at $519 million, or 8.24 percent of the proposed investment, according to court papers filed with the U.S. Bankruptcy Court in the Southern District of New York. But the Hughes heirs said that because of volatility of the stock, the true value likely exceeds $884 or 14 percent of he proposed investment.