General Growth Properties Inc. , the Chicago-based real estate investment company that owns the Bayshore Mall , is in serious financial trouble. The value of shares in GGP, the second largest mall owner in the country, plunged Tuesday and Wednesday following a Securities and Exchange Commission filing on Monday in which they laid out some bad news. The company has $1.13 billion in debt coming due in the next few weeks including $900 million in secured mortgage debt on malls in Las Vegas due Nov. 28, and another $58 million of corporate debt due Dec. 1. An additional $3.07 billion in debt comes due next year.
The SEC filing reads in part, "In the event that we are unable to extend or refinance our debt or obtain additional capital on a timely basis and on acceptable terms, we will be required to take further steps to acquire the funds necessary to satisfy our short term cash needs, including seeking legal protection from our creditors.
"Our potential inability to address our 2008 or 2009 debt maturities in a satisfactory fashion raises substantial doubts as to our ability to continue as a going concern."
Translation: Could be bankruptcy time. What would that mean for Eureka? Hard to say, but people are already speculating. Feel free to add your own scenario.