Monday, March 16, 2009

The Mall Is Flat

Suck on this, bondholders.

The financial condition of General Growth Properties Inc. became even more precarious as the mall giant let a Monday due date for $395 million in bonds pass without payment.

General Growth, which is trying to coax its bondholders into a nine-month extension, is betting that holders of the past-due bonds will forego filing an involuntary bankruptcy petition against it and instead allow it to restructure its $27 billion debt load out of court.