Sorvino Discusses Impact of Mall Titan's Chapter 11 Filing
Mall owner General Growth Properties Inc. sought bankruptcy protection in one of the largest real estate failures in U.S. history, capping a precarious, months-long effort to juggle the crushing $27 billion debt load it shouldered in past acquisition sprees. The long-anticipated Chapter 11 filing might wipe out what remains of the Chicago company's stock. General Growth, which owns and manages more than 200 malls, is the second-largest U.S. mall owner by number of properties behind Simon Property Group Inc.
With more than 200 U.S. malls and $27 billion in debt, General Growth is so large and its lineup of creditors so complex that, ultimately, it could take "a couple of years" to sort everything out in the bankruptcy case, said Heidi Sorvino. "You have bank debt, bondholder debt, properties all over the U.S. and many levels of creditors. This is not a simple bankruptcy," she said.
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