Owners of the Maine Mall in South Portland, General Growth Properties, have been successful in restructuring their debt, pending Bankruptcy Court approval December 15th. In a new plan announced Wednesday $9.7 billion of debt has been renegotiated that should allow 92 of its properties emerge from bankruptcy protection by the end of the year.
According to Greg Cross, an attorney representing the largest block of secured General Growth creditors, lenders extended the length of their loans in exchange for full repayment, plus interest and bankruptcy costs.
General Growth Properties is the nation’s second largest mall operator in the country. During the last several years the company expanded aggressively and took on debt totaling $27 million. As cash became scare and short-term loans became due, the company was unable to finance its obligations and in April filed for bankruptcy.
The national vacancy rate for retail space, for example, is over 10 percent, up from about 8 percent last year, according to Reis Inc., a real estate data tracker.
At the same time, landlords have had to cut deals to keep struggling tenants, driving rents down almost 2 percent to $19.22 per square foot.
Posted by: Michael Sosnowski
Categories:
Business News
Commercial Real Estate