Elk Grove Promenade developer slapped with lawsuit
General Growth Properties named in class action lawsuit; debt downgraded again - can you say junk bonds? Chicago-based General Growth...
https://www.elkgrovenews.net/2008/11/elk-grove-promenade-developer-slapped.html
General Growth Properties named in class action lawsuit; debt downgraded again - can you say junk bonds?
Chicago-based General Growth Properties (GGP) has been slapped with a class action lawsuit filed on behalf of shareholders for alleged securities violations. GGP is the developer of the embattled Elk Grove Promenade mall.
The lawsuit says that executives with the real estate developer gave misleading statements regarding the company's finances. There are currently no criminal complaints pending against GGP executives.
In other developments, GGP's financial health continued to deteriorate. This week Fitch's lowered GGP's debt rating from B+ to B. Essentially this makes it more expensive for GGP to borrow money - if they could.
For Elk Grove this simply means GGP will probably not be the final developers of the Elk Grove Promenade. GGP could sell of the half-completed anchor-less strip center, or more likely it will be sold of if and when GGP goes through a Chapter 11.
Either way, it will be quite a while until the city of Elk Grove sees the first dollar of the much anticipated sales tax revenues.
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The city should begin legal process to force the mall developer to perform; and prepare to stand in line to collect from bankruptcy proceeding. The current city council is not its job to keep the mall developer in check. We need new council members on November 4.
I agree or require Robert and Lisa Lent to pay the taxes and buy back the property. The main person behind the mall was Mrs. Lent and they need to be held accountable. The government wants accountability.We need to go back to the source of the greed and the people who pushed us into this situation. Homeowners who made bad decisions need to pay and people behind these BAD IDEAS need to pay. You cannot get someone to pay how does not have the money however if you go back to the source that made the money, the seller, we can recoup some losses. Same with the brokers, banks and developers! BRING THEM DOWN!!!!
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