General Growth Files Largest Bankruptcy In U.S. History

April 16, 2009

US (ChattahBox) – In one of the greatest examples of the falling U.S economy, General Growth Properties Inc. has filed the largest bankruptcy claim ever within the United States.

The company has claimed $27.3 billion dollars in accrued debt, a staggering amount that they were unable to recover from after months of trying to negotiate with creditors.

The debt soured in 2004 after they spent over $11 billion buying out a number of properties from Rouse Co, a move that General Growth never recovered from. But General Growth and Rouse Co. are not the only companies that will be effected by this sudden Chapter 11 filing.

“This is kind of the beginning of the end. This bankruptcy will drive down the values of mall assets in the United States. It’s going to put, I believe, more supply on the market than can be absorbed by investors,” Real Capital Analytics director Dan Fasulo said in an interview with Bloomburg.

However, many are saying this is a good move for the ‘other guys’, as it shows that building debt takes out the big companies, just as it does the small ones.

“General Group has long been the poster child of too much debt. There’s finally been some comeuppance for having too much debt,” RBC Capital Markets director Rich Moore commented.

But whether this will be a glitch that allows General Growth to reinvent itself and it’s investors, or if it is the domino that cause the others to fall, is yet to be seen.


Comments

One Response to “General Growth Files Largest Bankruptcy In U.S. History”

  1. Drewingkrew on April 16th, 2009 12:19 pm

    GENERAL GROWTH PROPERTIES, INC. announced on April 16, 2009.
    See statements here:GENERAL GROWTH PROPERTIES

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