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Report: Mills debt could drive it to bankrupcty

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According to the Associated Press:

The Mills Corp. warned Tuesday that a heavy debt load could force the mall developer into bankruptcy if it is unable to follow through with its plans to sell all or part of the company.

The warning came in a Securities and Exchange Commission filing that also detailed the results of an internal audit showing accounting errors and possible executive misconduct.

Mills' shares plunged more than 16 percent on the news.

Chevy Chase-based Mills said it may not have enough cash to continue operating beyond March 31 and that it would be forced to sell all or part of the company to pay off a $1 billion loan that is due on that date. It could be forced into bankruptcy, which would cause shareholders to "lose their entire investment," the company wrote in the federal filing.

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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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