General Growth extends debt deadline

General Growth Properties Inc., the U.S. mall owner trying to avoid bankruptcy, extended the deadline for bondholders to agree to new terms for $2.25 billion in debt.

The company's Rouse Co. unit extended the expiration date for its previously announced consent solicitation to 5 p.m. New York time on March 27, Chicago-based General Growth said today in statement distributed by Business Wire.

General Growth lost a Louisiana shopping mall to foreclosure by Citigroup Inc. and two other investors on March 20, a sign lenders are less willing to give the real estate investment trust more time to pay debts. The company, owner of 200 shopping malls in 44 U.S. states, has been negotiating with lenders and putting real estate up for sale. Larger rival Simon Property Group Inc. sold $650 million of 10-year notes and said on March 20 it's selling 15 million shares.

General Growth missed a payment on $395 million in bonds last week, the Wall Street Journal reported today. It's planning to stop paying interest and principal on existing bonds and asking holders to accept a fee in return for not demanding payment this year, the Journal said.