I look at this story as a little good news in a whole pile of bad for GGP, and a testament to Metz, Nolan & Co. Although I guess you could argue that the holiday caused this, if there weren't legitimate discussions going on I don't think the short term extension on some $900 million in debt would have been granted.
There's a lot more to this than just signing a short term extension. Loan covenants have to be looked at carefully, technical or material defaults examined and plenty of paperwork needs to be prepared by lawyers. But the lenders also have to think: do I really want these assets on my books, not to mention more dead loans? But they also have to ask themselves whether there is a reasonable possibility of repayment, probably through a sale that might be a short sale.
So stay on the lookout, and watch also for midnight oil burning at Sidley.
