leistb
03-21-2009, 01:16 AM
Citigroup forecloses on General Growth mall in La.
From staff and wire reports 3:11 PM EDT, March 20, 2009 A shopping mall in Louisiana owned by General Growth Properties Inc. (http://www.baltimoresun.com/topic/economy-business-finance/general-growth-properties-incorporated-ORCRP006401.topic), the owner of the Baltimore area's largest malls, is being foreclosed on, according to a report today by Bloomberg.
Citigroup Inc. (http://www.baltimoresun.com/topic/economy-business-finance/citigroup-incorporated-ORCRP003330.topic) filed papers to foreclose on Oakwood Shopping Center in Gretna, after General Growth failed to repay a $95 million loan on the property, according to the report.
The company is in default on substantial amounts of debt, some of which has matured. At the end of 2008, General Growth had $1.18 billion past due and another $4.09 billion of debt that could be accelerated by lenders. Another $340 million of debt came due this month.
General Growth Properties owns most of the area's regional malls including Harborplace, Towson Town Center and is Columbia's master developer.
The company has been negotiating with lenders and trying to sell some properties in an effort to avoid filing for bankruptcy.
Earlier this week, the company said lenders agreed to delay until Dec. 31, efforts to seek remedies to default on about $2.58 billion of senior debt. The reprieve affects the company's 2006 senior credit agreement, comprising a $1.99 billion term loan and a $590 million revolving credit line.
General Growth executives also had asked holders of about $2.25 billion of unsecured notes issued by Rouse to hold off from demanding payments through the end of the year. The deadline for those approvals was 5 p.m. today.
Citigroup said Oakwood Center will remain open, according to Bloomberg.
http://www.baltimoresun.com/business/realestate/bal-citigroup0320,0,478594.story
From staff and wire reports 3:11 PM EDT, March 20, 2009 A shopping mall in Louisiana owned by General Growth Properties Inc. (http://www.baltimoresun.com/topic/economy-business-finance/general-growth-properties-incorporated-ORCRP006401.topic), the owner of the Baltimore area's largest malls, is being foreclosed on, according to a report today by Bloomberg.
Citigroup Inc. (http://www.baltimoresun.com/topic/economy-business-finance/citigroup-incorporated-ORCRP003330.topic) filed papers to foreclose on Oakwood Shopping Center in Gretna, after General Growth failed to repay a $95 million loan on the property, according to the report.
The company is in default on substantial amounts of debt, some of which has matured. At the end of 2008, General Growth had $1.18 billion past due and another $4.09 billion of debt that could be accelerated by lenders. Another $340 million of debt came due this month.
General Growth Properties owns most of the area's regional malls including Harborplace, Towson Town Center and is Columbia's master developer.
The company has been negotiating with lenders and trying to sell some properties in an effort to avoid filing for bankruptcy.
Earlier this week, the company said lenders agreed to delay until Dec. 31, efforts to seek remedies to default on about $2.58 billion of senior debt. The reprieve affects the company's 2006 senior credit agreement, comprising a $1.99 billion term loan and a $590 million revolving credit line.
General Growth executives also had asked holders of about $2.25 billion of unsecured notes issued by Rouse to hold off from demanding payments through the end of the year. The deadline for those approvals was 5 p.m. today.
Citigroup said Oakwood Center will remain open, according to Bloomberg.
http://www.baltimoresun.com/business/realestate/bal-citigroup0320,0,478594.story