Business, Real Estate

Mall operator warns of bankruptcy

 

From CNN:

General Growth Properties Inc., the No. 2 mall operator in the United States, has warned that an ongoing slump in retail sales, combined with the credit market lockdown, has pushed the company to the brink of bankruptcy.

Chicago-based General Growth Properties said in an SEC filing late Monday that it has $900 million of property secured debt and $58 million of corporate debt coming up for renewal by Dec. 1. It also faces another $3.07 billion in debt that matures in 2009.

But “given the continued weakness of the retail and credit markets,” the mall operator fears it may not be able to refinance its loans at lower rates to meet its short-term cash needs.

General Growth manages Cumberland Mall, in northern Atlanta. Once upon a time, it was very funky.

 

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