Ireland - BOI exposed in GGP bankruptcy

Fri, Apr 17, 2009

Media speculation suggests that BOI's (Bank of Ireland) American unit has emerged as a lender to General Growth Properties (GGP).

GGP, one of the largest mall operators in the US, filed for bankruptcy early Thursday morning (15th April) in one of the biggest commercial real estate collapses in United States history.

Bank of Ireland is understood to have lent tens of millions of dollars last July to an off balance sheet special purpose vehicle which runs a certain number of GGP's shopping centres.

The loans were part of a $875 million transaction arranged by Eurohypo, a unit of Commerzbank which is GGP's largest creditor.

Filings with the Securities Exchange Commission in New York indicate that Bank of Ireland entered the deal via its branch in Connecticut. However, the filings do not quantify its exposure.

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