General Growth plunges after saying it may seek debt protection

General Growth Properties Inc., the second-largest U.S. shopping mall owner, fell as much as 71 percent in New York after saying it may seek creditor protection if it fails to refinance $958 million in debt.

General Growth may not be able to refinance or reschedule the loans due Dec. 1, because of the crisis in the credit markets, according to a filing by the Chicago-based company after the U.S. market closed yesterday. It may also fail to rearrange $3.07 billion in debt maturing next year, the filing to the Securities & Exchange Commission said.

``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 the filing. The steps it may take include ``seeking legal protection from our creditors,'' the company said.

General Growth is raising cash as investors dump shares on concern the company won't be able to refinance debt due this year. The company has lost more than 90 percent of its market value this year, and last month replaced its chief executive officer and fired Chief Financial Officer Bernard Freibaum after he sold 2.95 million shares to meet margin calls. General Growth also scrapped future development plans.

The company has cut its forecast for 2008 funds from operations, excluding items, saying it expects to earn $2.85 to $2.95 a share. General Growth had expected FFO of $3.42 a share.

The mall owner replaced CEO John Bucksbaum with Adam Metz. Bucksbaum remains chairman.

The company's third-quarter net loss widened to $15.4 million, or 6 cents a share, from $9.4 million, or 4 cents, a year earlier, General Growth said in a statement on Nov. 5.

General Growth slumped 96 cents, or 70 percent, to 41 cents at 9:51 a.m. in New York Stock Exchange composite trading. The company has also said it plans to sell malls in Las Vegas as part of a plan to raise cash.