General Growth Properties Declares Bankruptcy

The largest mall owner in Maryland and the second largest mall owner in the US has finally declared bankruptcy. General Growth Properties(GGP) has fought off bankruptcy for months but could no longer hold off its creditors. General Growth has amassed over 27 billion in debt from acquisitions and other financing loans. The acquisition of Rouse Company doomed the once promising company. Much of GGP’s growth was fueled by debt financing at low interest rates. When the credit markets froze up last year GGP found themselves unable to obtain capital at a time when it was sorely needed. The company failed in its attempts to renegotiate its agreements with its creditors. General Growth has a number of favorable properties that competitors will glady acquire at reasonable prices.