Wednesday, November 19, 2008

Mall owner may file bankruptcy

From Seattle PI:

Within two weeks, $958 million of the company's debt will mature. Next year, an additional $3.07 billion in debt is due. General Growth is working with its lenders to extend loan maturity dates, refinance or sell assets.

However, weak retail spending has hurt the company's prospects of refinancing the debt. If General Growth cannot find a solution in time, it will have to file for bankruptcy protection, the company warned in a Securities and Exchange Commission filing Nov. 10.

"Whatever happens, regardless of our financial situation, our properties will remain open," General Growth spokesman David Keating said Tuesday. "We're leasing our properties, and they're doing well. There's really no impact."

General Growth shares ownership of some if its mall properties but does not reveal its joint venture partners, Keating said.

"No mall is closing," he repeated. "It's going to be business as usual at the mall level regardless (of) what happens here at the corporate level."

General Growth owns five Oregon malls:

Clackamas Town Center

Gateway Mall

Pioneer Place Mall

Salem Mall

Rogue Valley Mall