Spring Break
Harbor mall owner files bankruptcy due to debt
Issue date: 4/30/09
General Growth Properties (GGP), one of the biggest mall operators in the country and in Baltimore, filed for Chapter 11 bankruptcy earlier this month.
The Chicago-based company's $27 billion debt forced 158 of its over 200 shopping centers to file for Chapter 11 bankruptcy, including Harborplace in the Inner Harbor. GGP also owns Towson Commons, which has not filed for bankruptcy.
When a company has filed for Chapter 11, it is permitted to continue to operate as normal while it develops a long-term plan to restructure its business and financial obligations, a process that for GGP is expected to take around 18 months to 2 years.
Harborplace is not in danger of closing due to its bankruptcy, according to William H. Cole IV, City Councilman for the district.
"I don't see this affecting the tourist or visitor experience [at the Harbor]. I don't see this changing anything. Harborplace remains the top tourist attraction in Maryland. I can't imagine any scenario where it won't be there," he said.
Day-to-day operations of GGP's malls are expected to continue as usual, according to a GGP press release.
Cole supported the shopping center giant's claim, saying that the move to Chapter 11 was only about restructuring their finances and not about changing their operations.
On April 22, GGP announced that additional properties, including seven more in Maryland, would file for bankruptcy.
A GGP press release on the same day discussed the prospect of additional properties filing for bankruptcy in the future.
"We do not currently contemplate that additional GGP subsidiaries will file for protection, although it is possible that circumstances could change during the restructuring process," Adam Metz, chief executive officer of GGP wrote.
While the company will be selling some of its properties as part of the restructuring plan, it is unclear which properties will be sold. GGP representatives could not be reached for comment.
The Chicago-based company's $27 billion debt forced 158 of its over 200 shopping centers to file for Chapter 11 bankruptcy, including Harborplace in the Inner Harbor. GGP also owns Towson Commons, which has not filed for bankruptcy.
When a company has filed for Chapter 11, it is permitted to continue to operate as normal while it develops a long-term plan to restructure its business and financial obligations, a process that for GGP is expected to take around 18 months to 2 years.
Harborplace is not in danger of closing due to its bankruptcy, according to William H. Cole IV, City Councilman for the district.
"I don't see this affecting the tourist or visitor experience [at the Harbor]. I don't see this changing anything. Harborplace remains the top tourist attraction in Maryland. I can't imagine any scenario where it won't be there," he said.
Day-to-day operations of GGP's malls are expected to continue as usual, according to a GGP press release.
Cole supported the shopping center giant's claim, saying that the move to Chapter 11 was only about restructuring their finances and not about changing their operations.
On April 22, GGP announced that additional properties, including seven more in Maryland, would file for bankruptcy.
A GGP press release on the same day discussed the prospect of additional properties filing for bankruptcy in the future.
"We do not currently contemplate that additional GGP subsidiaries will file for protection, although it is possible that circumstances could change during the restructuring process," Adam Metz, chief executive officer of GGP wrote.
While the company will be selling some of its properties as part of the restructuring plan, it is unclear which properties will be sold. GGP representatives could not be reached for comment.
Viewing Comments 1 - 8 of 8
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posted 7/23/09 @ 10:38 AM EST
Very interesting article, I found a lot of useful information. I totally agree with author.
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posted 8/03/09 @ 3:38 AM EST
The Chicago-based company's $27 billion debt forced 158 of its over 200 shopping centers to file for Chapter 11 bankruptcy, including Harborplace in the Inner Harbor. (Continued…)
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posted 8/20/09 @ 4:05 PM EST
General Growth Properties (GGP), one of the biggest mall operators in the country and in Baltimore
Digitalkamera
posted 8/24/09 @ 5:44 PM EST
i like the article, it is very informative to me. I totally agree with author, too
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posted 9/19/09 @ 12:23 AM EST
Yes, very good write up... thanks.
Chris
posted 9/23/09 @ 3:17 AM EST
I like the Harbor Mall... ):
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posted 9/25/09 @ 7:39 AM EST
Harbor Mall is the best.
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posted 10/02/09 @ 6:07 AM EST
Yeah. Harbor Mall is the king and a GREAT article. Totally agree.
Cheers
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