In a sign of the times, the second-largest mall owner in America – General Growth Properties – will probably file for bankruptcy on Friday, December 12th. Here’s a timeline:
- November 12: General Growth plunges on viability concerns
- November 20: General Growth takes on bankruptcy counsel
- December 1: General Growth gets loan extension, avoids bankruptcy. The extension was apparently a two-week extension on $900 million in debt, from November 28th to tomorrow, December 12th.
Fitch’s believes that General Growth will probably negotiate a deal with its creditors and restructure the debt. However, Fitch’s would consider that an event of default, even if General Growth avoids bankruptcy tomorrow.
Update: General Growth’s creditors refinanced the $900 million. However, General Growth still has major problems.