Mall Owner General Growth switches Bankruptcy Counsel

A representative of U.S. mall owner General Growth Properties Inc. has reported to Reuters that the company has switched bankruptcy counsel from Sidney Austin LLP to Well, Gotshal & Manges. Additionally, General Growth is also retaining another law firm, Kirkland & Ellis as bankruptcy counsel for some of its subsidiaries. Reasons were not given for the switch.

General Growth has a reputation for owning and managing more than 200 malls in the United States, and is currently struggling to restructure or postpone a debt payment of about $22 billion over the next 4 years, with a payment schedule due to begin in a couple of months.

The company has not yet filed for bankruptcy but has warned it may need to do so if it cannot liquidate their assets or win agreement on deadline extensions with their primary lenders.

Not surprisingly, as the company struggles in this turbulent economy, General Growth has put three Las Vegas malls and three high-end malls in Boston, New York and Baltimore up for sale trying to emerge from debt.