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First Colony Mall owner facing bankruptcy
By DIANE TEZENO
Despite facing possible bankruptcy, officials with General Growth Properties, owners of First Colony Mall and several Houston-area malls, don’t project an impact on operations at local malls or on the holiday shopping season.
Business operations at First Colony Mall and holiday shopping at its 150 stores are expected to go on as usual, despite GGP’s current financial woes.
In a recent filing with the United Securities Exchange Commission, GGP reported a $1.13 billion in debt due in December and another $3 billion due in 2009.
“We may not be able to refinance or repay our substantial indebtedness, which could have a materially adverse affect on our business, financial condition, results of operation and common stock price,” a statement from the annual filing report read.
Company officials projected in the report that already poor economic conditions are expected to worsen and have hurt the company’s revenues and available cash.
In October, the company replaced its chief executive officer, president and chief financial officer.
Despite the company’s negative financial position, Public Affairs Director Nichole Sprecks said shoppers shouldn’t notice a difference at GGP’s various properties.
“Regardless of our situation, our properties and company will continue to operate, remain vibrant and look forward to a prosperous holiday season,” Spreck said.
Company officials also expressed concerns with with an “extremely volatile” stock market in their filing.
According to the New York Stock Exchange, stock prices for the Chicago-based company were at a high of $65.65 per share on Feb. 16, 2007 and have fallen to a current 32 cents per share as of Nov. 13.
“We continue working with our advisors to develop a comprehensive, strategic plan to generate capital from a variety of sources,” said Spreck.
According to the public affairs director, those sources include joint venture interests, non-core asset sales and a corporate level capital infusion and strategic business combinations.
Business operations at First Colony Mall and holiday shopping at its 150 stores are expected to go on as usual, despite GGP’s current financial woes.
In a recent filing with the United Securities Exchange Commission, GGP reported a $1.13 billion in debt due in December and another $3 billion due in 2009.
“We may not be able to refinance or repay our substantial indebtedness, which could have a materially adverse affect on our business, financial condition, results of operation and common stock price,” a statement from the annual filing report read.
Company officials projected in the report that already poor economic conditions are expected to worsen and have hurt the company’s revenues and available cash.
In October, the company replaced its chief executive officer, president and chief financial officer.
Despite the company’s negative financial position, Public Affairs Director Nichole Sprecks said shoppers shouldn’t notice a difference at GGP’s various properties.
“Regardless of our situation, our properties and company will continue to operate, remain vibrant and look forward to a prosperous holiday season,” Spreck said.
Company officials also expressed concerns with with an “extremely volatile” stock market in their filing.
According to the New York Stock Exchange, stock prices for the Chicago-based company were at a high of $65.65 per share on Feb. 16, 2007 and have fallen to a current 32 cents per share as of Nov. 13.
“We continue working with our advisors to develop a comprehensive, strategic plan to generate capital from a variety of sources,” said Spreck.
According to the public affairs director, those sources include joint venture interests, non-core asset sales and a corporate level capital infusion and strategic business combinations.
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