Shopping-mall owner General Growth Properties Inc., parent of Buckland Hills Mall, is getting a two-week extension on $900 million in debt that had been scheduled to come due last week as the company works to stave off bankruptcy and negotiate longer-term extensions with lenders.
The mortgages cover two malls, Fashion Show and Palazzo, in Las Vegas, the company said late Sunday. Shares fell 25 cents, or more than 18 percent, to $1.13 in Monday afternoon trading, mirroring a decline in the broader market.
Chicago-based General Growth Properties, the nation’s second-largest shopping mall owner, has been hit hard by the deteriorating U.S. economy and problems at struggling U.S. retailers. Analysts are unsure whether new managers, installed in late October, will be able to keep the company afloat given its staggering debt load.
“It will be incredibly difficult for General Growth to deal with the mountain of obligations that are coming due next year,” said Benjamin Yang, an analyst at research firm Green Street Advisors, in an e-mail.
General Growth’s struggles come amid growing concern about debt tied to commercial properties. Industrywide about $20 billion will be due next year, covering everything from office and condo complexes to hotels and malls. (AP)
