General Growth hires bankruptcy lawyers

Thu, Nov 20, 2008 (11:54 a.m.)

General Growth Properties Inc., owner of several Las Vegas malls and developer of the massive Summerlin planned community, today confirmed it has hired bankruptcy attorneys to advise the company as it struggles to refinance debt.

The Wall Street Journal earlier reported the Chicago company has hired Sidley Austin as bankruptcy counsel. This does not mean a bankruptcy is certain or imminent.

The Associated Press reported company spokesman David Keating said General Growth has hired law firm Sidley Austin "in an advisory role." He called the decision "standard for any company faced with financial challenges and should not be interpreted any other way."

General Growth stock was steady today, trading up 3 cents at 43 cents.

The company warned Nov. 10 it may need to seek bankruptcy protection if it can't refinance some of its debt.

In Summerlin, General Growth holds 7,700 acres of unsold land through its Howard Hughes Corporation subsidiary. Like other local landowners, Howard Hughes is having trouble selling land to homebuilders and commercial developers because of the weak real estate market.

Locally, General Growth also owns local malls the Meadows, Boulevard, Fashion Show, Grand Canal Shoppes and the Shoppes at the Palazzo.