news-record.com

CHICAGO (AP) — General Growth Properties Inc. has received a two-week extension on mortgage loans totaling $900 million, as the troubled shopping mall owner works to stave off bankruptcy and negotiate longer-term extensions with lenders.

The mortgages cover two malls, Fashion Show and Palazzo, located in Las Vegas, the company said late Sunday.

General Growth Properties said last month it faced solvency trouble and might seek bankruptcy if it couldn't refinance or extend the nearly $1 billion in debt coming due. The company hired law firm Sidley Austin as an adviser as it struggles to refinance its staggering debt amid the economic downturn.

The nation's second-largest shopping mall owner, General Growth has a stake in more than 200 shopping malls in 44 states. It is trying to sell its Las Vegas locations.

Shares of General Growth have lost 91 percent of their value since the end of September, amid concerns about the real estate investment trust's ability to sell debt, and turmoil in General Growth's executive ranks. Shares closed Friday at $1.38.

Last month, the company reported disappointing third-quarter results and cut its year-end forecast. Company spokesman David Keating had said then General Growth was looking at multiple options, including continuing to work with lenders on loan extensions.

General Growth Properties is the parent company of Four Seasons Town Centre in Greensboro and The Streets at Southpoint in Durham.