Ala Moana Owner Bankruptcy?

[Ninja]

Re: Ala Moana Owner Bankruptcy?

One of three things will happen, GGP gets relief from it lenders with a cash infusion or reworked financing teams to delay the due date of the debts. Not likely in this enviroment.
Have an outsider infuse cash into the comapny to allow more time to sell some of it's properties to pay the debt down, GGP has already list Fashion Showplace Mall on the Strip for sale, AMC would also receive strong interest if it was listed. Possible.
GGP defaults on the loans and files Chapter 11 bankruptcy and in order to pay back it's creditors has to sell several of it's key properties at a discount(AMC and possibly Ward Centers). Most Likley.

Of the two other major mall operators in the US, Aussie Based Westfield Group would be a good fit to enter the Hawaii market.
Simon Group owns Waikele Outlets but mostly owns older suburban malls, similar in profile to Kahala Mall.

What a bankruptcy would do is pretty much kill it's Ward Projects, even the currently being built Ward Village Shops(Whole Foods) would be further delayed in being finished and this project is now nearly 2 years behind schedule. Ward Warehouse and Farmers Market would be spared the wrecking ball for many years to come.

[joshuatree]

Re: Ala Moana Owner Bankruptcy?

Of the two other major mall operators in the US, Aussie Based Westfield Group would be a good fit to enter the Hawaii market.
Simon Group owns Waikele Outlets but mostly owns older suburban malls, similar in profile to Kahala Mall.

Macerich can also be another possible group to enter the Hawaii market if GGP will be selling its properties. AMC fits their portfoilio.

[Mista Bumpy]

Re: Ala Moana Owner Bankruptcy?

Boo hoo. Since Long's, L&L, and the food court are the only places in AC that I've been able to afford in a long time, I'll cry not for Argentina if the whole joint becomes a used car lot again.

LOL!! Ya, love da foodcourt, if you can't find da grinds you want der, you ain't lookin'! I wonder how may Rolex dealers you can cram into one place b/4 you hit some kind of limit, esp. since there is already at least 10 or 12 in Waikiki alone? In the luxury department, Honolulu has been maxed out for some time, and these recent economic problems have bought it all to a head.

Ala Moana is a neat place, but I still can't figger how thay could have gotten that far into debt.

[DannyWilliams]

Re: Ala Moana Owner Bankruptcy?

The only reason I go to Ala Moana is the Apple Store. And maybe Macaroni Grill.

They decided to cater to tourists. Now tourism is way down.

AMC was goin Tourist Country w/ the huge renovation in the 90's and goin upwards when I was still there and that is why a lot of islander locals preferred shopping at other malls like Pearlridge instead.

[MyopicJoe]

Re: Ala Moana Owner Bankruptcy?

Man...

I hope this doesn't mean they'll raise the price of the Christmas choochoo train

[Bobinator]

Re: Ala Moana Owner Bankruptcy?

Forget the choo-choo, man. These are the signs of the times. Question is, what are you doing to prepare for the coming depression? The world is resilient, but numbers don't lie. We're in for the biggest s*it of our lives. All of us can lose our jobs and the shirt off our back as a result of businesses going under. It's a domino effect. We just better hope and pray Costcos, Walmart, Sams Club and the others don't follow suit. Keep your eyes on Macy's. They're in for a big one. Neiman Marcus and Norstrom's in the same boat. They're hurting.

Save your $, pay off your debts, stock up on essentials and invest in hands-on precious metals if you've got the extra cash. Cash ain't gonna be worth spit in the coming months, cuz the dollar will plummet, and interest rates will skyrocket to help save it. Some say by year's end. Others say by the 1st quarter of 2009. Don't say you haven't been warned. If you haven't noticed, your grocery bills have gone up, and we haven't even scratched the surface. Don't even get me started on rail (That's another thread).

Hyper-inflation, here we come!

[craigwatanabe]

Re: Ala Moana Owner Bankruptcy?

GGP also owns the Prince Kuhio Mall here in Hilo and some retail centers in Kona as well.

One thing I learned while in the auto business was that Hilo as opposed to Honolulu is mainly supported by Govt jobs, meaning lots of City, State and some Federal workers amounting to roughly 60% of all income for East Hawaii, so this recession hasn't affected Hilo as much as it has other counties.

Tourism like the construction industry has it's two faces, booming and stagnating. Kona is feeling the stagnating effects of a weak economy while Hilo seems to be weathering it better than the rest.

[joshuatree]

Re: Ala Moana Owner Bankruptcy?

Ala Moana is a neat place, but I still can't figger how thay could have gotten that far into debt.

AMC isn't the problem for GGP. It's debt incurred from other acquisitions and the credit crunch that is tanking them.

"Another issue gnawing at investors is an obligation that General Growth Properties inherited when it merged with the Rouse Company. In 1996, the Rouse Company purchased the remnants of the empire of Howard Hughes, which at the time included tens of thousands of acres of land in Nevada and Los Angeles. As part of this deal, Rouse signed a contingent stock agreement (CSA) that obligated them to pay out stock twice yearly to the Hughes descendants, and to make one final payment in 2010 based on a final valuation in 2009. General Growth Properties assumed the obligations under this CSA after the merger with Rouse, and the company expects the payout to be "significant". Although the payout will be in stock, and not cash, it has raised fears of dilution amongst existing investors."

[TuNnL]

Re: Ala Moana Owner Bankruptcy?

General Growth Properties assumed the obligations under this CSA after the merger with Rouse, and the company expects the payout to be "significant". Although the payout will be in stock, and not cash, it has raised fears of dilution amongst existing investors.

That could be the understatement of the year. The value of General Growth Properties stock has fallen so far, Standard & Poor has kicked them out of the S&P 500, and GGP is no longer indexed there.

[Konaguy]

Re: Ala Moana Owner Bankruptcy?

AMC isn't the problem for GGP. It's debt incurred from other acquisitions and the credit crunch that is tanking them.

Another issue gnawing at investors is an obligation that General Growth Properties inherited when it merged with the Rouse Company.

The Rouse Company purchase was indeed what has broken the camels back here. But GGP had a significant amount of debt before that purchase. For example, Ala Moana is encumbered with 1.5 billion worth of debt from all the renovation that occurred there.

[Konaguy]

Re: Ala Moana Owner Bankruptcy?

GGP also owns the Prince Kuhio Mall here in Hilo and some retail centers in Kona as well.

I believe GGP manages (but doesn't own) Kings Shops, Queens Marketplace up in Waikoloa.

[TuNnL]

Re: Ala Moana Owner Bankruptcy?

More bad news for General Growth. I’m not a business major, but at this point, I would be very surprised if they don’t file for bankruptcy.

General Growth's credit ratings downgraded
Mall developer General Growth Properties' credit ratings downgraded

NEW YORK (Associated Press) - A credit ratings agency downgraded the ratings of mall developer General Growth Properties Inc. and certain subsidiaries on Friday, as concerns mounted about the company's ability to meet coming debt payments and other funding needs.

Moody's Investors Service downgraded the ratings of senior secured bank debt and senior unsecured debt three notches to 'Caa2' from 'B3,' which affects $5.9 billion of debt. Both ratings are non-investment level, or "junk" grade. The downgrades include debt at Rouse Co. LP.

[Vanguard]

Re: Ala Moana Owner Bankruptcy?

Both ratings are non-investment level, or "junk" grade.

Now I know what I'm buying for stocking stuffers!

[matapule]

Re: Ala Moana Owner Bankruptcy?

More bad news for General Growth. I’m not a business major, but at this point, I would be very surprised if they don’t file for bankruptcy.

Oh they will just get in line for part of the $700B bailout swill. Everybody else is.

[Ron Whitfield]

Re: Ala Moana Owner Bankruptcy?

Oh yeah? Where's the line for the working class?
Oh, there it is, at the un/employment and welfare offices, and the soup kitchens, and the Goodwill/Salvation Army stores...