Industry experts have said the firm is much too leveraged, and will likely face bankruptcy in the face of billions of dollars in loans coming due in the next 12 months. However, it's clear from Sunday's action that at this point, lenders would rather find a solution than take on the loans themselves, and are heartened by GGP's attempt to sell its three Las Vegas mall holdings to raise cash for the current due date. The trust has offered up Fashion Show Mall, Shoppes at the Palazzo and Grand Canal Shops in the city, and is reportedly also putting up for sale two office assets in Portland, OR and Seattle, as well as Victoria Ward in Hololulu, HI.
The trust has hired attorney firm Sidley Austin, which has a headquarters in Chicago, to consider a possible bankruptcy. While some say there's no way out of the massive debt the company now faces--exacerbated by the down economy and weak financing options--the collapse of one of the country's largest real estate companies is a move that many industry and financial leaders may do anything possible to avoid.
The Board of Directors for the trust has made some major changes to show movement, including the removal of CEO John Bucksbaum, the main family link to founders and brothers Matthew and Martin Bucksbaum. While John Bucksbaum, Matthew's son, remains as chairman of the Board, the trust hired interim CEO Adam Metz, and interim president Thomas Nolan Jr. replaced Robert Michaels, who was moved to COO.
Stock gains have pushed the trust back at more than $1 a share. After hitting a bottom of 35 cents per share in mid-November, the firm's stock bounced back in the limited trading Friday to $1.38 per share, though that price is much lower than the high $30s range it traced at for most of the year.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.