General Growth gets another debt extension
By Emily Chasan
NEW YORK, Dec 1 (Reuters) - Shopping mall owner General Growth Properties GGP.N said on Monday it received an interim debt extension on $58 million in notes related to one of its operating units, giving the company another slight reprieve as it tries to restructure its debt.
The agreement with a noteholder for its unit known as The Rouse Company LP (TRCLP), extends the maturity date of those notes to Dec. 11, 2008, the company said in a statement on Monday. The due date was previously Dec. 1.
The Rouse Company was bought by General Growth for $7.2 billion in 2004, and runs high-end shopping malls like Boston's Fanueil Hall, Baltimore's The Gallery at Harborplace and New York's South Street Seaport. General Growth assumed $5.2 billion of the company's debt as part of the deal.
Earlier this month, General Growth -- the No. 2 mall owner in the United States -- confirmed it had hired Chicago law firm Sidley Austin as bankruptcy counsel, as it negotiates with its lenders.
The sagging U.S. economy and global credit crunch has hurt mall owners this year, as they rely heavily on debt to finance mall purchases and improvements, and weaker business conditions have put a strain on rental income from tenants.
The extension comes on top of extensions it has received from other lenders. Last week General Growth said it had won a two-week extension on the maturity of $900 million in mortgage loans related to two Las Vegas shopping centers, Fashion Show mall and Shoppes at the Palazzo.
(Reporting by Emily Chasan; editing by Neil Fullick)
