General Growth hires as debt adviser

General Growth Properties Inc., the real-estate investment trust that said this month it might file for bankruptcy, hired law firm Sidley Austin as financial adviser as it seeks to refinance $27.3 billion in debt.

"General Growth Properties has hired Sidley Austin in an advisory role," David Keating, a company spokesman, said today in a statement. "We are looking at multiple options to address our current financial situation, among them being continuing to work with our syndicate of lenders on loan extensions."

General Growth, based in Chicago, owns shopping malls across the U.S. In a Securities and Exchange Commission filing submitted Sept. 30, the company reported $27.3 billion in debt and said "we have a substantial amount of debt which we may not be able to refinance or pay."

"Our potential inability to address our 2008 or 2009 debt maturities in a satisfactory fashion raises substantial doubts as to our ability to continue as a going concern," General Growth said in a Nov. 10 regulatory filing. Steps it may take include "seeking legal protection from our creditors."

General Growth has plunged 99 percent this year in New York Stock Exchange composite trading, cutting its market value to about $110 million. Standard & Poor's removed the company from the S&P 500 index this month.

Hiring 'Standard'

The company today cautioned against drawing conclusions, saying, "The hiring of such a law firm is standard for any company faced with financial challenges and should not be interpreted any other way."

James Conlan and Larry Nyhan, co-chairmen of Chicago-based Sidley Austin's bankruptcy practice, didn't respond to calls and e-mails seeking comment.

Separately, General Growth said today that it postponed by two years the expiration of an agreement to purchase preferred shares. The expiration date had been Nov. 18, 2008. As part of the extension, the purchase price of each right was changed to $105 from $148, meaning that right holders are entitled to purchase one-third of one one-thousandth of a share of General Growth's Series A Junior Participating Preferred Stock for $105.

The changes are "part of the effort by the board to protect and maximize the value of our stockholders' investment in the company and helps to ensure that the company's ongoing strategic evaluation is allowed to proceed in an orderly manner," interim Chief Executive Officer Adam Metz said in a statement.