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Mall owner struggling
CHICAGO (AP) -- Shares of General Growth Properties, owner of Pine Ridge Mall in Chubbuck, plunged for the second straight day Wednesday after the struggling mall owner warned it may need to file for bankruptcy and Standard and Poor's said it was removing the stock from the S&P 500 index.
GGP also owns Grand Teton Mall in Idaho Falls. The real estate investment trust said in a regulatory filing this week that it faces solvency trouble and may seek bankruptcy if it can't refinance or extend nearly $1 billion in debt due next month. On Tuesday, Standard and Poor's said it would remove the company from the S&P 500 after trading closed Wednesday. Shares fell 14 cents, or 28.4 percent, to 35 cents, after sinking to an all-time low of 24 cents per share earlier Wednesday. The company's stock traded as high as $51.24 a share during the past 12 months.
The Chicago-based REIT said in Monday's filing with the Securities and Exchange Commission that it can't assure it can get extensions or refinancing on its existing debt. The company has $3.07 billion in property and corporate debt set to come due next year. The nation's second largest mall owner has been hurt by falling funds from operations and a tightening global credit market. It is trying to sell off properties and cut costs to weather the tough economic climate.
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The following are comments from the readers. In no way do they represent the view of our paper.
steve wrote on Nov 13, 2008 11:31 PM: " GGP also owns the old Fred Meyers building and several other properties which they have allowed to fall into shambles.....and then ask outrageous prices for the property despite paying pennies in taxes....City should have put their foot down a long time ago and taken over the properties under imminent domain.... So let the go bankrupt...let them finally sell out and maybe we can get rid of some of the blight in this town. " Submit a CommentCommenting RulesWe encourage your feedback and dialog. All comments are subject to deletion by our Web staff.
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The Shopping Fanatic wrote on Nov 13, 2008 2:32 PM:
A copy is below for your records:
GGP said:
"We continue working with our advisors to develop a comprehensive, strategic plan to generate capital from a variety of sources including, but not limited to, core and non-core asset sales, joint venture interests, a corporate level capital infusion, and/or strategic business combinations. Regardless of our situation, our properties and company will continue to operate, remain vibrant, and look forward to a prosperous holiday season."
If you read the (10q) SEC filing you would get a better understanding of what was actually reported than from a general news print.
Thanks from a concerned citizen in Pocatello. "