General Growth gets loan extension
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CHICAGO (AP) — General Growth Properties Inc., the owner of 200 U.S. shopping malls, including Baton Rouge’s Mall of Louisiana, said Wednesday it received another extension on $900 million in loans for two Las Vegas properties.
Lenders agreed to place the loans in forbearance until Feb. 12 as the Chicago company tries to sell some assets or raise other capital to help pay upcoming debt maturities. The mortgages cover two Las Vegas malls, Fashion Show and Palazzo, which are among those up for sale.
General Growth got a two-week extension on the loans for the Las Vegas properties earlier this month.
The country’s second-largest mall owner with properties in 44 states is saddled with a huge debt it acquired during the real estate market’s boom years when it aggressively bought up assets. Refinancing that debt has proven difficult in the credit crunch. Analysts are unsure whether new managers, installed in late October, will be able to keep the company afloat as the recession drags on.
Lenders for a separate senior credit agreement inked in 2006 agreed to extend that deal until Jan. 30.
General Growth’s shares have lost about 96 percent of their value in the past six months. Its stock was up 15 cents at $1.72 in midday trading on Thursday.
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