Update: A Reuters report indicates three more GGP malls may have been turned over to special servicers. It mentions Town East Mall, in Mesquite, Texas, the Southland Mall in Hayward, California, and the Deerbrook Mall in Humble, Texas.
So this really may be it for GGP. Perhaps today's the day we see the Chapter 11 filing.
Citigroup Inc. and other lenders have filed court papers to foreclose on General Growth Properties Inc.'s Oakwood Center mall in New Orleans, which has a $95 million mortgage that came due Monday and wasn't paid.
It was unclear early Friday afternoon what the foreclosure action means for other loans among General Growth's $27 billion in debt. The owner of more than 200 U.S. malls already has more than $1 billion in debt that is past due, though the lenders haven't demanded immediate payment. Another $4 billion could be called due if those lenders so choose. A foreclosure could cause General Growth's lenders to declare a cross default and demand payment of their loans.
The Oakwood foreclosure action comes as General Growth is trying to coax most of its holders of $2.25 billion in bonds into an agreement to abstain from demanding payment of principal and interest on those bonds through the end of this year. Of those bonds, $395 million were due Monday. General Growth set a deadline of 5 p.m. EDT Friday for bondholders to agree to the consent-solicitation pact. If not enough bondholders agree, General Growth could be forced to seek Chapter 11 bankruptcy protection.
Past links and stories:
- March 20, 2009, GGP's Lenders Waive Default; REIT Asks for Further Forbearance
- March 10, 2009, GGP Asks for More Time
- March 3, 2009, GGP Reportedly Getting Bids for Properties
- Feb. 24, 2009, GGP Posts Gains But Drops Earnings Call and Estimates
- Feb. 20, 2009, GGP Bankruptcy Scenario
- Feb. 18, 2009, GGP Misses Payments
- Feb. 2, 2009, General Growth Gets Another Extension
- Jan. 5, 2009, GGP Switches Bankruptcy Advisors
- Dec. 30, 2008, GGP Signs Forebearance Agreement
- Dec. 19, 2008, GGP Puts Centers on the Block
- Dec. 18, 2008, General Growth Extension Comes Through
- Dec. 15, 2008, GGP "Continuing its Discussions with Lenders"
- Dec. 14, 2008, Breaking: GGP Refinances
- Dec. 5, 2008, Citi Plays Hardball With GGP
- Dec. 3, 2008, Centro, GGP Find Ways to Hang On
- Dec. 1, 2008, GGP Gets Two Week Extension
- Nov. 25, 2008, Ackman Builds Stake in GGP
- Nov. 20, 2008, General Growth Hires Bankruptcy Advisor
- Nov. 17, 2008, General Growth Downgraded; Feldman to Stop Filing Public Reports
- Nov. 12, 2008, General Growth Roundup
- Nov. 11, 2008, General Growth Warns of Default
- Nov. 5, 2008, GGP, Kimco Fall After Cutting Forecasts
- Nov. 2, 2008, General Growth "Almost Literally Worth Nothing"
- Oct. 17, 2008, Management Changes at GGP
- Oct. 15, 2008, Margin Calls Hit Two More Retail REITs
- Oct. 7, 2008, General Growth Near Bankruptcy?
- Oct. 3, 2008, General Growth CFO Steps Down; Company Suspends Dividend
- Oct. 2, 2008 GGP Under Fire for Inclusion on Short-Sell Ban List
- Oct. 1, 2008, Could General Growth Be Sold?
- Sept. 23, 2008, Short Selling Banned on General Growth
- Sept. 22, 2008, General Growth Strikes Back
- Sept. 16, 2008, General Growth Offers More Recourse
- Aug. 12, 2008, Another Look at GGP's Debt
- Aug. 6, 2008, Analysis of GGP's Debt
- July 25, 2008, Stories With Bigger Implications?
- July 14, 2008, GGP Lines Up New Financing
- April 16, 2008, GGP's Growing Debt Problem