Nationwide Mall Owner Faces Possible Bankruptcy

Chicago-based General Growth Properties, Inc., one of the largest mall developers in the United States, recently confirmed that it retained Sidley Austin in an “advisory role.” Sidley, known for its bankruptcy and corporate reorganization practice, is said to be one of the largest reconstruction groups in the world.

General Growth’s portfolio includes more than 200 malls around the U.S. Within two weeks, $958 million of the company’s debt will mature. And next year, an additional $3.07 billion in debt is due. The company is working diligently with lenders to extend loan maturity dates, and refinance or sell assets. Last month, General Growth announced that it was putting three of the largest shopping malls in Las Vegas up for sale—the Fashion Show Mall, the Grand Canal Shoppes at the Venetian Resort Casino, and the retail shops at the Palazzo Resort and Casino.

In addition to financial struggles, General Growth replaced its chief executive office and president in October after the board discovered that the executives had taken out personal loans that “did not follow internal company policy.”

Source: Seattle Post-Intelligencer