The owner of the Oviedo Marketplace is swimming in debt and has warned of impending bankruptcy. 

 

A filing with the U.S. Securities and Exchange Commission, General Growth Properties states that the "continued weakness of the retail and credit markets" makes it uncertain that they can get extensions or refinance their current $958 million debt.

 

If they can't, it will be necessary to take steps toward paying coming-due debt, "including seeking legal protection from our creditors."

 

"Our potential inability to address our 2008 or 2009 debt maturities in a satisfactory fashion," the filing reads, "raises substantial doubts as to our ability to continue as a going concern."

 

Nicole Spreck, director of public affairs for General Growth Properties, said it is a company policy not to comment on SEC filings but e-mailed the following statement:

 

"We continue working with our advisors to develop a comprehensive, strategic plan to generate capital … regardless of our situation, our properties and company will continue to operate, remain vibrant and look forward to a prosperous holiday season."

 

General Growth also owns the Altamonte Mall, the Festival Bay Mall at International Drive, and West Oaks mall in Ocoee, along with 11 other centers across Florida and 200 nationwide.

 

Chris Molho, General Growth Properties' assistant general manager of the Oviedo Marketplace, said Wednesday that mall management hadn't been contacted by corporate about the filing. "All I know is there's a possibility (of bankruptcy)," he said. "You know as much as I do."

 

There are several forms of bankruptcy. While Chapter 7 usually leads to liquidation, Chapter 11 protection allows a company to reorganize or rehabilitate without closing down, freeing it from creditors' lawsuits.

 

The Oviedo-Winter Springs Chamber of Commerce plans to contact the mall management through Oviedo's Economic Development Committee to get an update of what's going on, Chamber Executive Director Cory Skeates said.

 

"Because it is a corporate decision, I'm not surprised they haven't heard on the local level," Skeates said of the Marketplace.

 

General Growth Properties acquired Rouse Company in 2004, the former owner of the Marketplace. The Seminole County Property Appraiser site lists Rouse as the owner of the property, "care of" General Growth. A spokeswoman said General Growth paid the 2007 taxes on the property.

 

In the acquisition of Rouse and other properties nationwide, the Chicago-based company also bought the properties' debts, Skeates said.

 

"They said, 'If you buy our stuff you also have to take our debt,'" he said. "Now that debt has started to come due."

 

The debt is scheduled to mature Dec. 1 unless it is refinanced or the deadline extended, the filing states.

 

"With the economy doing what it's doing," Skeates said, "that debt has caught up to them."

 

If the company does seek Chapter 11 protection, it shouldn't have an immediate effect on mall tenants, mostly small businesses and franchisees, within the Oviedo Marketplace.

 

"Generally it wouldn't make a whole lot of difference for them," said Robert Goetz, certified business analyst and manager of the Small Business Development Center at Seminole Community College. "They will still have their rent due … it's going to be a minimal effect that they'll see."

 

He said he's been urging struggling businesses to renegotiate their rents if a landlord is not delivering the promised foot traffic. 

 

As for the news of General Growth on the edge of bankruptcy, he wasn't shocked. "It's no surprise seeing retail where it is and credit where it's not."