General Growth Still Facing Debt Discussions

It has been revealed that concerned mall owner General Growth Properties Inc., trying to stave off a bankruptcy filing, said it is still trying to negotiate an extension on $900 million in debt that is due to be repaid, but suggested that there can be "no guarantee" it will obtain a reprieve.

Investors, however, emerges out be positive that a bankruptcy filing would be avoided. Shares increased 36 cents, or 25 percent, to close at $1.80 in the regular session. The stock increased another 7 cents after hours.

The mortgages cover two Las Vegas malls, Fashion Show and Palazzo. Earlier this month, Chicago-based General Growth received a two-week extension on the debt loans.

General Growth also reveal it refinanced a separate $896 million worth of debt loans, retiring a $58 million bond that matured and $814 million of debt scheduled to mature next year.

Last month, the company pointed out upseting third-quarter results and slashes expected at the end of this year, weeks after the mall owner's board removed its chief executive, president and chief fiscal officer.

Meanwhile, the troubles continued to grow for the nation's retailers. The Commerce Department indicated that retail sales were down by 1.8 percent in November. The reduction, which was a bit below the 1.9 percent slip that had been forecast, was the fifth straight monthly fall, a record stretch of weakness.

The recession was led by a 2.8 percent decline in auto sales, which had been expected since automakers had reported that November was their worst sales month in more than 26 years.

Declining prices might sound good for buyers, but a prolonged, widespread reduction would do serious economic damage, dragging down incomes, hitting home prices even more and shrinking corporate profits. However, all financial commitments could be easily settled by taking out debt loans. These loans not only provide finance to the consumers for meeting their financial requirements, but also provide great opportunity to rebuild their questionable credit score with making repayments on time.

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