Bondholder threats push GGP closer to default

General Growth Properties appears closer to default after reports a group of bondholders have asked their trustee to sue the company to collect payments.

According to Reuters, citing the Wall Street Journal, the Bank of New York Mellon is representing 25% of the holders of $395 million in bonds that were due 16 March.

GGP is a US-based real estate company whose subsidiary, Rouse, missed a $2 billion interest payment on 16 March, triggering a credit event for its derivatives trades. Accroding to a 10K filing on 27 February, GGP had apprxomiately $24.8 billion in outstanding debt.