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Shopping Mall Giant Goes Bankrupt
Second-largest U.S. mall owner can't refinance billions in debt
By Clay Dillow
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Posted Apr 16, 09 7:08 AM CDT
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(Newser)
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Chicago-based General Growth Properties, the second-largest US shopping mall owner, filed for Chapter 11 bankruptcy today after attempts to refinance more than $27 billion in debt failed, Bloomberg reports. The owner of more than 200 shopping malls owes a unit of Germany’s Commerzbank $2.6 billion, while bondholders are on the hook for $4 billion. Much of the debt stems from the purchase of developer Rouse Co. in 2004.
General Growth lost 81% of its market value in just 6 months as credit markets collapsed and refinancing debt became impossible. In November, Standard and Poor’s de-listed the company from the S&P 500 index after shares, which had been as high as $67 in March 2007, plunged and market value sunk to $128 million, lowest on the list. Shares closed at $1.05 yesterday.