Feldman Mall Properties, Inc. Announcements

NEW YORK, Feb. 11 /PRNewswire-FirstCall/ -- Feldman Mall Properties, Inc. (Pink Sheets: FMLP) made the following announcements:

Forbearance Agreement Regarding Golden Triangle Mall

On December 29, 2009, a subsidiary of the Company, FMP Denton LP, executed a Second Modification and Extension of Forbearance Agreement with JPMorgan Chase Bank, N.A. regarding a $30.0 million line of credit secured by the Golden Triangle Mall.  Another Company subsidiary, Feldman Equities Operating Partnership LP, is liable under a guaranty in favor of the lender to the extent that the principal amount of the debt exceeds $24.6 million.  As of December 29, 2009 the outstanding balance was $26.6 million, $1.2 million having been paid to the lender on December 2, 2009 in conjunction with the sale of an outparcel at the Mall.  The loan is in default due to the violation of certain financial covenants and the failure to pay the loan on its April 4, 2009 maturity date.  A Forbearance Agreement was executed by FMP Denton LP and the lender on March 18, 2009 and modified on June 30, 2009.  As a condition to reinstatement of the loan, the modification required FMP Denton LP satisfy a number of items prior to December 31, 2009, which it was not able to do.  The Second Modification and Extension of Forbearance Agreement extended the forbearance period to March 31, 2010, in order for negotiations to take place between FMP Denton LP and the lender relative to reinstating the loan.  The Company can provide no assurances that such an understanding will be reached.

Sale of Interest in Foothills Mall

On January 29, 2010, a subsidiary of the Company, Foothills Mall LLC, completed closing of the sale of its interest in the Foothills Mall located in Tucson, Arizona to its joint venture partner for a price of $1.5 million.  Another Company subsidiary, Feldman Equities Management, Inc., received $350,000 as consideration for the termination of its property management agreement for the mall.  The Company will use the proceeds to satisfy its remaining obligation to Lawrence H. Feldman under his recent agreement with the Company, and to continue and move forward with the recapitalization and restructuring of the Company.  

Northgate Mall Receivership

On February 5, 2010 the holder of the indebtedness encumbering the Northgate Mall located in Cincinnati, Ohio, filed a complaint in foreclosure against the Company's subsidiary, FMP Northgate LLC, and requested the appointment of a receiver to operate the property.  FMP Northgate LLC has agreed to consent to the receiver's appointment.  A hearing on the appointment will be held on February 16, 2010.

About Feldman Mall Properties, Inc.

The Company's shares of common stock are quoted on Pink OTC Markets, a privately-owned company formerly known as Pink Sheets, which operates Pink Quote.  The Company's portfolio, including non-owned anchor tenants, now consists of two regional malls aggregating approximately 2.065 million square feet, excluding Northgate Mall. For more information on Feldman Mall Properties Inc., visit the Company website at www.feldmanmall.com

SOURCE Feldman Mall Properties, Inc.