Citizen Staff and Wire Reports
RealFAST LOCAL NEWS
Shoppers not affected
General Growth Properties, owner of Tucson and Park Place malls, filed for Chapter 11 bankruptcy protection Thursday in a tough bargaining move to restructure $27 billion in debt.
General Growth, the nation’s second-largest shopping mall owner, with more than 200, said shoppers will not be affected by its bankruptcy filing.
The Chicago-based company is paying the price for its aggressive expansion at the height of the real estate boom. General Growth, like many homeowners during the frenzy, bought several properties at top dollar and is finding lenders unwilling to refinance.
“The collapse of the credit markets has made it impossible for us to refinance maturing debt outside of Chapter 11,” Chief Executive Adam Metz said.
The real estate investment trust’s stock closed at $1.05 a share. The stock traded last spring as high as $44.23.
Staff and Wire Report