General Growth Properties Inc., which owns Northgate Mall, said Thursday the shopping center and its other properties will operate as normal after warning the company may seek bankruptcy protection.
“It’s business as usual,” senior general manager Joe Janosko said.
The Chicago-based company’s third-quarter report filed this week with federal regulators warned that General Growth could be forced to file bankruptcy to restructure its debt.
General Growth Properties Inc.’s stock has dropped 83.9 percent this week.
Day; Opening price; Closing price
Monday; $2.18; $1.37
Tuesday; 87 cents; 49 cents
Wednesday; 43 cents; 35 cents
Thursday; 35 cents; 35 cents
Source: New York Stock Exchange
The company’s stock closed at 35 cents on Thursday.
“We continue working with our advisers to develop a comprehensive, strategic plan to generate capital from a variety of sources including, but not limited to, core and noncore asset sales, joint venture interests, a corporate level capital infusion, and/or strategic business combinations,” according to a company statement.
The company said that regardless of its situation, “our properties and company will continue to operate, remain vibrant and look forward to a prosperous holiday season.”
According to its quarterly report, the company has about $1.13 billion in debt maturing this year and more than $3 billion in debt maturing in 2009. The report says the credit crunch and recent downgrades of General Growth’s debt by credit ratings agencies and other problems could prevent the company from refinancing or repaying that debt.
Standard and Poor’s this week announced it is dropping General Growth Properties Inc. from its benchmark S&P 500 Index.