General Growth Properties is facing the strong possibility it may have to file for bankruptcy within the next month.This turn of events will have a negative impact locally. Especially since they manage and/or own a number of shopping centers here in Hawaii.
It will be interesting to see how this will play out. Especially in light of the weak global credit markets. Thus I figure they’ll have to file for Chapter 11 bankruptcy protection. GGP’s over leveraged balance sheet doesn’t help matters. In other words, no one in their right mind would want to bail them out of this self inflicted financial debacle.
Thus it is likely they may have to sell their crown jewels like Ala Moana Shopping Center. But even that may be tricky.As far as I understand, Ala Moana is encumbered with 1.5 billion dollars worth of debt.
It seems Hawaiian Telcom will be joining GGP in bankruptcy court in the near future. Especially since their balance sheet is also over leveraged.
On that note, I found this comment to above cited Honolulu Advertiser article very interesting.It addressed the issue of what might happen if Hawaiian Telcom files for bankruptcy.
“To my knowledge, the PUC will not allow the phone company (in this case HawTel) to go “Belly Up” – per say. — Due to public safety, and national security, a PUC regulated company, like a local phone company, MUST continue to operate. What might happen, is that HawTel may be forced into a position where it is assumed by the nearest RBOC (regional Bell Operating Company). In this scenario, you might see AT&T or Verizon having it dumped back into their laps….”
On that note, Howard Dicus wrote a interesting blog entry on the challenges facing the three major local utility companies.
I found this “satirical rampage” (hat tip to Doug @ Poinography) quite amusing.It is excellent visual follow-up to this op-ed urging the local Republican party leadership to resign due to the GOP’s poor showing in last local elections .
I e-mailed the HTH reporter, Jason Armstrong, when I had found out the 6(5) phase was awarded by the CFLHD on October 24,2008.Jason had written this article about a delay in completing the 6(5) phase of the Saddle Road improvement project a few months ago.
I pointed out to him that the CFLHD awarded the contract for this phase on October,24,2008. Nonetheless, he was still insistent that his previous article was accurate.
Then adding insult to injury, he stated this at the end of the e-mail :
“Aaron, since you have publically maligned me by incorrectly stating I “would not listen to your concerns,” I’ll respond by directing you to read Linda Lingle’s cricism of bloggers like yourself. In case you’ve decided to forget her words, they’re listed right below your Saddle Road post.”
Sorry Jason, you refused to listen when I spoke to you after your article came out. I mentioned that Brennon Morioka had stated publicly that this phase would be opened to public by the summer of 2009.But you refused to acknowledge this fact. Instead you stated that West Hawaii Today has propensity of inaccurate reporting.
But what was even more egregious was the fact you based your article on only that CDUP extension request done on behalf of the CFLHD.In short, you failed to fully investigate extension request this properly.Thus causing undue concern that this phase would be delayed.
See the minority opinion of the 3rd PUC commissioner who opposed the Verizon transfer of HawTel to Carlyle.