Elk Grove Promenade Developer On the Brink Of Bankruptcy

General Growth Properties facing numerous loan deadlines


Troubled mall developer General Growth Properties (GGP) is facing numerous loan deadlines as it fights to stave off a bankruptcy filing. GGP is the developer of the Elk Grove Promenade mall.

The Chicago-based company, which carries a total of $27 billion in debt, is faced with the following loan deadlines:

- Four loans were due yesterday, the largest of which is for $900 million on two Las Vegas strip luxury malls. This loan has already been extended beyond it’s December, 2008 deadline.
- On Monday a $95 million loan came due on the Oakwood Center mall in New Orleans.
- $225 million was due Thursday on a general loan from investment banker Goldman Sachs.
- A $58 million loan collateralized by the Chico Mall in Chico, Calif.

In a SEC filing GGP said it may seek a Chapter 11 bankruptcy if it is unable to extend or renegotiate the loans.

GGP, the developer of the now stalled Elk Grove Promenade, owes the City of Elk Grove an excess of $300,000 in late development fees.