Daily Archives: April 17, 2009
[Source: Max Jarman, Arizona Republic] — The high profile Arizona Center mixed-use development in downtown Phoenix filed for Chapter 11 bankruptcy protection Thursday, after its parent’s creditors balked at a debt-restructuring plan. The Arizona Center, Tucson Mall, Sierra Vista Mall, and two other local shopping centers were among 158 properties that filed separately for protection along with parent General Growth Properties Inc. The company owns more than 200 retail properties in 44 states.
In Chapter 11, a company is protected from creditor suits while it develops a plan of financial reorganization that is acceptable to its creditors and the court.
General Growth is the nation’s second largest shopping center owner, behind Simon Property Group, and its bankruptcy is thought to be the largest retail failure in U.S. history. General Growth said all of its shopping centers; master-planned communities and other properties remain open for business. “Our properties will continue to operate, our employees will continue to come to work and get paid, and shoppers will continue to shop,” the company said in a statement. The Chicago-base mall owner listed assets of $29.56 billion and debts of $27.29 billion on its filing. [Note: To read the full article, click here.]