Carl Marks Leads "Hughes Heirs" to a Successful Settlement Agreement with General Growth Properties

Carl Marks Advisory Group LLC served as financial advisor to the Representatives of the so-called "Hughes heirs" under the Contingent Stock Agreement, a significant party of interest in the General Growth Properties, Inc. (GGP) bankruptcy case. The claims of the Hughes heirs were resolved through the negotiation of a formal settlement agreement between the Representatives and GGP. The settlement, which closed in December 2010, resolved a long-standing dispute between the Hughes heirs and GGP over Summerlin, an award-winning 22,500-acre residential development in Las Vegas.

Under the terms of the agreement, GGP paid $230 million in cash to the Hughes heirs in exchange for a full release and settlement of all claims against GGP and its affiliates. GGP inherited the Summerlin property in 2004 when GGP purchased The Rouse Company, which had originally acquired Summerlin from the Hughes heirs in 1996.

"We are very pleased to have reached a mutually beneficial settlement agreement with GGP on behalf of the holders of the Contingent Stock Agreement, which paved the way for GGPís successful reorganization," said David Elkins, one of the three representatives of the Hughes heirs along with David Lummis and Platt Davis. "The settlement is the culmination of a long and mutually profitable association with GGP and Rouse and is a testament to the vision of the Howard Hughes Corporation in maximizing long term value from the unique Summerlin property."

Summerlin spans 22,500 acres along the western rim of the Las Vegas Valley, located approximately 12 miles from downtown Las Vegas. Currently home to nearly 100,000 residents, Summerlin includes hundreds of neighborhoods and dozens of villages. With 26 public and private schools, four institutions of higher learning, nine golf courses, major health and medical centers, business parks, shopping centers, cultural facilities and more than a dozen houses of worship, Summerlin is a multi-generational and fully integrated community. Since its inception in the early 1990s, Summerlin has consistently ranked in the Robert Charles Lesser annual poll of Top Ten Master Planned Communities in the nation, and Summerlin still has more than 7,500 acres remaining to develop.

"Despite ongoing challenges in residential real estate in the Las Vegas market, we are pleased to have assisted in achieving a substantial recovery for the Hughes heirs, affirming the premium value associated with Summerlin," said Christopher K. Wu, Partner at Carl Marks. The Carl Marks team was led by partners Mark L. Claster and Wu. Steve Hoort of Ropes & Gray served as lead counsel to the Representatives.


	Mark L. Claster Partner Carl Marks Advisory Group LLC 212-909-8440 \| phone mclaster@carlmarks.com

	Christopher K. Wu Partner Carl Marks Advisory Group LLC 212-909-8447 \| phone cwu@carlmarks.com