GGP. Yikes.... BK in the near future? NEW YORK, March 20 (Reuters) - A Louisiana court issued an order to seize and sell a General Growth Properties Inc GGP.N shopping center in a New Orleans suburb after the No. 2 U.S. mall owner failed to repay a $95 million loan, a Citigroup Inc (C.N) unit said on Friday.
The Oakwood Shopping Center in the town of Gretna is the fourth General Growth property seized in the last few days after the company failed to pay mortgage debt.
Rating agency Standard & Poor's on Friday said securitized mortgages on three malls had been transferred to special servicers after General Growth said it would not be able to repay the loans due to difficult capital market conditions.
Part of the Town East Mall, a 1.3 million-square-foot mall in Mesquite, Texas, secured a loan that has a $105.4 million balance due on April 11.
The Southland Mall in Hayward, California, secured a loan with a balance of $81.3 million. The loan matured March 1, according to the ratings agency.
A third loan, which a balance of $73.7 million, was secured by part of the 1.2 million-square-foot Deerbrook Mall in Humble, Texas. The loan matured March 1.
General Growth did not immediately return a call seeking comment. (Reporting by Ilaina Jonas; editing by John Wallace)
DOn't know if this specific failure is huge, but S&P/Moodys have a huge number of deals that will be downgraded. This will mean large writedowns by the holders which include many big banks. That may start another wave of bleeding. Bank optimism is now gone and they will trade back toward their lows over time.