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Thu April 16, 2009
General Growth bankruptcy includes Lansing Mall
By Mark Bashore, WKAR Radio News
East Lansing, MI – Mark Bashore, WKAR Radio News
America's second-largest mall company filed for bankruptcy Thursday and that has repercussions for Lansing.
General Growth Properties' has over 200 holdings across the country.
It's not seeking protection for all of them, but it is for the Lansing Mall.
Analyst Joel Bloomer of Morningstar Equity Research says that's not a sign that the Mall isn't generating cash.
Instead, he says it means there's probably significant mortgage debt associated with the property.
General Growth says all of its malls will remain open while it pursues the chance to restructure billions of dollars in debt.
It says its primary problem is a frozen commercial real estate market that prevents it from refinancing maturing mortgages.