Long predicted and now a reality, General Growth Properties has finally collapsed under nearly $27.3 billion in debt, much of it attributed to a Las Vegas property buying spree.
In Las Vegas, General Growth and its subsidiaries own three malls on the Las Vegas Strip; retail, residential and office real estate in Summerlin; and two regional malls for locals- Meadows and Boulevard malls. Strip properties are the Fashion Show mall, Grand Canal Shoppes, and the Shoppes at the Palazzo. Their Summerlin holdings include The Hughes Corporation, which owns the stalled-in-construction Summerlin Centre retail, office and residential development.
The Chicago-based real estate investment trust on Thursday filed Chapter 11 bankruptcy protection in New York federal court, leaving judges, lawyers and creditors haggle over holdings in about 200 complex properties in 22 states, including pending cases for 360 separate entities, including at least 16 with Las Vegas connections.
The malls will continue to operate during bankruptcy proceedings, which experts say could drag on for years.