Large US mall owner files for chapter 11

General Growth Properties announced today that it filed for chapter 11 bankruptcy in the US bankruptcy court for the southern district of New York.

According to its press release, the company owns 158 regional shopping centres, and its subsidiaries have also filed for protection. The Rouse Company, which missed a $2 billion interest payment on 16 March 2009, triggered a credit event for its derivatives trades. The auction to settle the trades was held yesterday, with the final price set at 29.25 cents in the dollar.

In its November 2008 SEC filing, the company reported that it had a total of $24.7 billion in outstanding debt. The announcement for the chapter 11 filing comes after various media sources reported that the company's bondholders had asked the Bank of New York Mellon to sue the company in order to collect payments due.