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General Growth Extension Comes Through

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It took almost a week, but General Growth got an extension on its $900 million loan until February.

U.S. mall giant General Growth Properties Inc. said its syndicate of lenders for a $900 million loan has agreed to extend the payment deadline till Feb. 12, 2009.

Last week, all the lenders had agreed to extend the deadline except for Citibank, which held out on the extension for the loan, originally due Nov. 28, on two Las Vegas malls -- Fashion Show and Shoppes at the Palazzo.

The loan extension comes after six of the banks used pressure tactics on Citigroup Inc on Wednesday, to get it to agree to an extension, according to a Wall Street Journal report.

On Wednesday, the six lenders had threatened an end run to get Citigroup's cooperation, and said if an extension was not approved, they would not agree to declare the loan due, giving General Growth a de facto extension, the paper said citing people familiar with the talks.

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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