Maine Mall’s owner warns of bankruptcy

CHICAGO – The company that owns the Maine Mall in South Portland warns that it may be forced to file for bankruptcy if it can’t refinance or extend nearly $1 billion in debt due next month.

General Growth Properties Incorporated, which is the nation’s second-largest mall owner, is trying to sell off properties and cut costs to weather the rocky economic climate. It’s also suspended its dividend and ousted a cadre of top executives.

But that hasn’t calmed investors.

Shares fell 88 cents to close at 49 cents per share Tuesday after the company warned of solvency trouble in a regulatory filing. They fell another 14 cents, or 28 percent, on Wednesday.

The Bangor Mall, which is owned by Simon Property Group Inc., is not in financial distress, James Gerety, the mall’s general manager, said Wednesday. While Simon Property stock shares also fell Wednesday by nearly 11 percent to close at $51.31, the company is doing okay, Gerety said.

“There’s been nothing reported that we are in any financial troubles whatsoever,” Gerety said. “We’re doing fine.”

The Simon Property Group has its headquarters in Indianapolis and is the nation’s largest public real estate company.

There are about 80 stores in the Bangor Mall, where retail business has been affected by the economic crisis, Gerety said.

“We’re weathering the economic landscape just as everyone else is. To say our sales are up would be irresponsible,” he said. “Our sales aren’t up.”

But Gerety said that the Bangor Mall continues to be the shopping destination of Central Maine.