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April 21, 2009

Manager says no changes due for Sooner Mall despite bankruptcy filing by owner

By M. Scott Carter

Last week's Chapter 11 bankruptcy filing by General Growth Properties will not affect customers at Norman's Sooner Mall, an official with the company said Monday.

Lynn Palmerton, Sooner Mall's general manager said the mall on Main Street west of Interstate 35 is open for business. "It's business as usual," she said. "Our customers will not see any difference in services or operations."

In a statement posted on the company's Web site, Adam Metz, General Growth Properties' chief executive officer said company properties will continue to "offer the same great visitation experience."

"We don't expect any of our visitors to notice any difference in our quality of service to customers," Metz said. "Our tenant retailers, restaurants, movie theaters and everyone at our malls stand ready to serve you just as we have in the past."

Last Thursday, General Growth Properties -- the country's second-largest mall operator -- filed for Chapter 11 bankruptcy protection after company officials failed to persuade a majority of debt holders to give GGP more time to refinance billions of dollars in debt the company racked up during the housing boom.

"While we have worked tirelessly in the past several months to address our maturing debts, the collapse of the credit markets has made it impossible for us to refinance maturing debt outside of Chapter 11," Metz said in a statement.

He said GGP "will continue to explore strategic alternatives and search the markets for available sources of capital."

GGP's bankruptcy, filed with the federal Bankruptcy Court for the Southern District of New York was expected by some analysts. And though the bankruptcy filing includes the Sooner Mall and Bartlesville's Washington Park Mall, a third Oklahoma property -- Quail Springs Mall -- was not involved, GGP's Web site noted.

The bankruptcy affects 158 regional shopping centers owned by GGP. Other GGP subsidiaries have also filed for bankruptcy protection. Company officials said they intend to work with its constituencies to emerge from bankruptcy as quickly as possible "while executing on a plan of reorganization that preserves the Company's integrated, national business operations."

No stranger to Oklahoma, in December of 1996, GGP purchased the Sooner Mall and half-interest in Quail Springs Mall from Prime Property Fund, a real estate group of Equitable Life Assurance Company.

That deal, reported at $53 million, included $25 million in General Growth Properties stock, $19 million in cash and the assumption of $9 million in debt.

GGP operates more than 200 malls in 44 states.

Palmerton said local customers -- and those at the company's other 200 sites -- will see nothing different. "We're not experiencing any problems," she said. "Sooner Mall is going to continue to provide the best shopping experience for our customers."

M. Scott Carter 366-3545 scarter@normantranscript.com

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