UPDATE 1-Some General Growth directors face SEC probe

NEW YORK, Aug 17 (BestGrowthStock) – The U.S. Securities and
Exchange Commission is conducting a formal investigation into
possible insider trading by certain past and current officers
and directors of General Growth Properties Inc (GGP.N: ), the No.
2 U.S. mall owner said in a bankruptcy filing on Tuesday.

The formal investigation is the continuation of an informal
inquiry the SEC launched in October 2008, when the
Chicago-based company ran into trouble as it faced maturing
debt it could not refinance, according to revised plan to
emerge from bankruptcy.

A representative from General Growth could not be reached
for immediate comment.

The company filed for bankruptcy protection in April 2009
and is set to emerge from Chapter 11 in October.

“While General Growth cannot predict the outcome of
this investigation with certainty, based on the information
currently available to it, General Growth believes that the
outcome of the investigation will not have a material adverse
effect on its financial condition or results of operations,”
the company said in the filing in U.S. bankruptcy court in
Manhattan.

Also, the company said Blackstone Real Estate Advisors,
part of Blackstone Group LP (BX.N: ), has signed an agreement to
take a 7.6 percent in the new General Growth and the spinoff of
the company’s non-income producing properties in exchange for
$500 million.

Blackstone will take its shares of the companies from the
investor group bankrolling General Growth’s exit from
bankruptcy. Those investors include Pershing Square Capital
Management LP, Brookfield Asset Management Inc (BAMa.TO: ) and
Fairholme Funds Inc.
(Reporting by Ilaina Jonas; editing by Andre Grenon)

UPDATE 1-Some General Growth directors face SEC probe