Rarely a day goes by anymore without someone in the business press claiming that a bankruptcy filing by General Growth Properties is imminent. Despite several missed deadlines for renegotiating the terms of the debt held by its bondholders however, it still hasn’t happened.
Perhaps it is because GGP is just too big to fail. Yesterday I ran across this blurb in a post on a blog called Credit Equity Correlation (sounds exciting doesn’t it?) written by a Wall Street guy named Jim Delaney.
“General Growth Properties could stand as the poster child for the current commercial real estate environment as although they have stopped paying debt service on two of their key properties the lenders have not forced GGP into bankruptcy as they believe there is more to be gained by riding out the storm with a company whose tenants are happy with the way the Malls where they lease are maintained.”
I think that speaks well for the employees of the battered developer who are steering the ship through this storm. As long as they can retain good people they have a fighting chance to pull through this.