Citigroup reportedly balked two weeks ago during refinancingtalks, forcing the tiny two-week extension that ended Friday. Theother lenders, which include Wachovia Corp., Bank of America,Deutsche Bank AG, Eurohypo AG and Goldman Sachs Group Inc., arereportedly willing to play along to help keep GGP afloat, but it'sbeen reported that this weekend, Citigroup heaped requirement uponrequirement for the REIT to meet. No official word was availablefrom any of the companies involved, other than a statement Fridayfrom the trust that negotiations are ongoing, but that there's noguarantee an extension will be obtained.

The trust, which has already consulted with attorney firm SidleyAustin in regard to possible bankruptcy, has said that it couldface Chapter 11 unless this $900 is refinanced. Up for sale are theproperties in question: Fashion Show Mall, Shoppes at the Palazzoand Grand Canal Shops, though it's doubtful that buyers will befound in this down market.

On a positive note, the trust was able to raise the $896million, used to retire a $58 million bond issued by theGGP-purchased Rouse Co. that matured Thursday, and to refinanceabout $814 million of mortgage indebtedness scheduled to mature in2009. These new loans range from five to seven years. The companyhas more than $2 billion in loans coming due by the end of2009.