General Growth signs forbearances

General Growth Properties Inc., a publicly traded real estate investment trust that owns more than 200 shopping malls in the U.S., signed forbearance agreements temporarily protecting the company against defaults.

The senior credit lenders agreed to take no action until Jan. 30 in return for General Growth’s consent to allowing no change in control or sale of assets without their consent. General Growth also will not incur debt or buy subordinated debt without the lenders’ consent.

The holders of $900 million in matured mortgages agreed to waive non-payment until Feb. 12.

Standard & Poor’s reacted to the forbearance agreement by lowering the corporate rating to CC and the unsecured debt to C, the lowest ranking short of D for “default.”

General Growth has another $3 billion to refinance in 2009, including $595 million of senior notes that mature in March and April.

The assets of Chicago-based General Growth are on the books for $29.7 billion while debt was $27.3 billion on Sept. 30. General Growth acquired Rouse Company LP in November 2004.

General Growth rose 19 cents on Dec. 26 to $1.29 in New York Stock Exchange trading. The stock topped out at $67 on March 23, 2007.