General Growth takes on bankruptcy counsel: report

Source: Reuters

Date :11/20/2008 5:12:21 AM

General Growth Properties Inc has hired law firm Sidley Austin as bankruptcy counsel as it negotiates with lenders for more time to restructure its $27 billion debt, the Wall Street Journal said on Wednesday.

The move does not mean that a Chapter 11 filing from the company is imminent, the report added.

General Growth and Sidley Austin representatives were not immediately available for comment.

General Growth, based in Chicago, has $1.13 billion in debt coming due, including $900 million in secured mortgage debt due November 28 on two of its Las Vegas shopping centers -- Fashion Show mall and Shoppes at the Palazzo, and $58 million of corporate debt on December 1.

The company is in talks with banks including Deutsche Bank , Goldman Sachs Group and Wachovia Corp to extend its payment deadline on the $900 million due November 28 as it tries to avoid a possible bankruptcy filing, the Journal said, adding that General Growth was also trying to sell three luxury malls on the Las Vegas Strip.

(Reporting by Aarthi Sivaraman; Editing by Clarence Fernandez)

NEW YORK (Reuters)