Like, say, "General Growth Partners?"
Well, at present, a lot of bankruptcy headache. It's not exactly a surprise, as GGP, the massive mall manager, has been flirting with bankruptcy protection for some time now, but the devil is in the details. One of our least favorite is this: Bill Ackman holds about 25% of the firm and will provide $375 million in financing through the bankruptcy process. Ackman believes that the "equity will survive the process," and he may be right, but he makes us so nervous we can barely stand still. First Target (we know, we know, the jury is still out on Target, we believe in you BA!), now this?
Ending months of speculation, General Growth, along with 158 of its more than 200 U.S. malls, filed for Chapter 11 protection from creditors while it tries to restructure some of its debt. Its joint-venture properties and third-party management business were not included in the bankruptcy.
The Chicago-based company, which owns such valuable malls as Fashion Show in Las Vegas and Faneuil Hall Marketplace in Boston, listed total assets of $29.56 billion and total debt of $27.29 billion.
Our fingers are crossed!
General Growth files for bankruptcy protection [Reuters]