Biggest Real Estate Failure Ever – Mall Owner Files for Bankruptcy Protection
In a sign that the credit markets are still seized up, General Growth files for bankruptcy protection.
General Growth Properties Inc, the second-largest U.S. mall owner, declared bankruptcy on Thursday in the biggest real estate failure in U.S. history.
They are the owners of over 200 malls. They filed for restructuring (Chapter 11), so hopefully their creditors will renegotiate with them. Said General Growth Chief Executive Adam Metz:
While we have worked tirelessly in the past several months to address our maturing debts, the collapse of the credit markets has made it impossible for us to refinance maturing debt outside of Chapter 11.
Or else my wife will have to start shopping at – here it comes! – strip malls!