Which Company is This Email talking about. it has me stumped

and I want to short them -- if they are going bankrupt tonight at midnight.

Email as follows...

Dear A-Letter Reader,

My colleagues at Stansberry Research tell me there will likely be a MAJOR bankruptcy announcement, before midnight, tomorrow.

Porter Stansberry, who’s done as good a job predicting these things as anyone in the financial community over the past year (and was recently acknowledged in Barron’s for his efforts), explains the situation, and what it means for your money, below.

Best Regards,

Erika Nolan, Publisher
The Sovereign Society

-------------------



America's Next Major Bankruptcy
(it's not GM or CitiGroup)...

Happens this FRIDAY at Midnight

By Porter Stansberry
Founder, S&A Investment Research



Dear A-Letter Reader —

This Friday, Dec. 12th, the next stage of the financial crisis will begin.

That's when one of America's biggest businesses (they
operate in 44 states), will undoubtedly declare bankruptcy.

How can I be so sure it will happen on Friday, December 12th?

Two words...

Unpayable debt.

You see, the company I'm talking about, which is the 2nd biggest in its industry, and is headquartered in Chicago, has until Friday, December 12th at midnight to pay back a $900 MILLION loan.

In the current market, this amount of debt is lethal.

The company is currently paying over $1 billion per year in interest expenses to finance their debt—that's MORE THAN THEIR OPERATING INCOME. (That's like having a mortgage payment that's bigger than your entire paycheck.)

There is absolutely no way the company can make this $900 million payment or raise this kind of money.

And there is absolutely no way they can continue as an ongoing business. The firm basically said as much, in their most recent Quarterly Report (10-Q), dated November 10th of this year.

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

In finance, this "growing concern" language is the kiss of death. So what this company is really saying is they'll be forced to declare bankruptcy if they can't find the cash—and the deadline is Friday, Dec. 12th, at midnight.

[edit: clipped quoted content, added required EX tags]

[edit on 12-12-2008 by 12m8keall2c]

Hmm. Sounds interesting but also like a scam. Bottom-feeding off of the chaos at the very least.

If I had to guess... I would say a commercial real estate holding company? That bubble is about to explode. Is General Growth Properties based in Chicago?

Or maybe an energy company?

reply to post by kosmicjack


Yes. It would seem they're referring to General Growth Properties.

www.northjersey.com...
Tuesday, Dec. 2

A giant Chicago mall operator that owns shopping centers in Wayne and Paramus has gotten a two-week extension to figure out how it will pay off $900 million in debt.

Ahhhh GGP...

My company is getting ready to lose a small fortune over this....


I hope they find money somewhere and soon!

It is General Growth. I searched for that quote and found the article here. The quote from the email appears under the photo to the right

General growth

General Growth Properties Inc. (NYSE: GGP) – the owner of Providence Place and the Silver City Galleria in Taunton and manager of the Swansea Mall – is one of the nation’s largest publicly traded real-estate investment trusts (REITs) based on market capitalization. Additional information is available at www.ggp.com.

Its General Growth Properties. GGP on the stock exchange. They own 3.2 billion and are defaulting on the 50 million payment at noon today. They supply most of the leasing property for major corporations! Shopping center leases, Auto property leases, Much of the commercial property leases in 47 states.

Zindo

Perhaps already happen as we know that a 50 billion firm,

A Wall Street powerbroker for nearly 50 years who built an influential firm has confessed to a massive fraud scheme that will cost investors at least $50 billion, federal authorities say.

www.msnbc.msn.com...

This is going to start or perpetuate the domino effect in the retirement accounts that are linked to this firm.

Thanks for the warning on that. I'm curious to see how this unfolds. Whats mind boggling to me is why we are so focused on bailing out banks and such when such a major player on Wall Street is about to fall through the floor This is the first I am hearing of this, you would think it would be big news, or at least mentioned..weird

GGP becomes doubtful

General Growth Refinances Some Debt, Still Faces Major Hurdle


DOW JONES NEWSWIRES

General Growth Properties Inc. (GGP) refinanced almost $900 million in debt, though the moves are unrelated to the major debt deadline the struggling real estate investment trust faces Friday.

The company completed $896 million of mortgage loans used to retire a $58 million bond that matured Thursday and refinance $814 million in mortgage loans maturing next year.

General Growth said the loans are separate from the $900 million in debt backed by two of its malls in Las Vegas that is facing a Friday deadline. It said it was continuing discussions with its lenders on those two loans and there was no assurance it would get further extensions.

The company's shares recently jumped 28% to $1.85 as investors were optimistic that the extension would come through. The company's shares have fallen 96% this year.

If no agreement is reached on those loans, which were originally due Nov. 28, the company's banks could declare it in default on that debt, triggering cross defaults on other General Growth debts and forcing the company to seek bankruptcy protection.

Fitch Ratings said this week it expects a distressed debt exchange, in which General Growth would be forced to restructure its debt obligations to avert bankruptcy, or the company's failure to repay debt in the near term. Fitch considers a distressed debt exchange to be akin to a default.

General Growth, the second-largest U.S. mall owner by number of properties, said last month that a failure to refinance or extend $1 billion in debt due that month could trigger default on billions of dollars of debt and its ability to continue operations would be in "substantial doubt."

Two weeks ago, Citigroup Inc. (C) scuttled a proposed nine-month extension on the deadline by withholding its approval and demanding a concession on a different loan in return. Six other banks had agreed to the nine-month extension.

ETA: Here's a Yahoo Report on GGP

[edit on 12/12/08 by redhatty]

Please assure me that we are not giving away another bailout!

It sounds like it's too late for them though. But if they have something to do with all these other companies, that doesn't sound very good for the job market, or the economy. It just keeps getting worse.

General Growth Properties is a very major player and if they default then they have a fairly good chance of making it through restructure if the economic enviroment was normal.

Of course the economic enviroment is far from normal.

In late November of 2008, GGP missed a deadline to repay $900 million in loans backed by two Las Vegas retail properties. GGP lenders could issue a notice of default, prompting the company to seek protection from its creditors under Chapter 11 bankruptcy. According to a December 2008 Wall Street Journal article, if the company cannot re-negotiate terms of certain debt obligations, it has warned investors that it will seek bankruptcy court protection.[9] GGP reported in excess of $25 billion in debt (mostly mortgages) as of September 30, 2008.

en.wikipedia.org...

The deal with GGP is that even if they come up with the money now, they may not have it later and that makes them a risk for any investor. More and more retailers are closing their doors which means lost revenue for GGP. Come January, that's going to happen at an exponential rate.

Their future is totally out of their control at this point. When they lose rents from bankrupted or out-of-business retailers, who do they collect from? That money is gone. Many retailers saw this coming and when leases expired, they negotiated new leases on a month to month or quarterly basis. Retailers won't have much of a loss on rent if they bailout early on a lease but GGP won't be able to fill their vacant spot. No income is the result.

[edit on 12/12/2008 by kosmicjack]

[edit on 12/12/2008 by kosmicjack]

reply to post by kosmicjack


Very true Re: GGP, but if you were going to file BK today, why pay your loans?

I doubt that GGP is the one filing today

Does anyone have an update on this? I still think it's GGP.

Just because GGP doesn't file now, doen't mean they won't later. The numbers are just not there.

A quick look at promotions: 50% -70% at many retailers. That is a price-point usually reserved for mid-January.

Retailers across the board are slashing prices to unload their inventories before the end of the year. Not because people aren't buying now - they are - but because they won't be in January. They would rather sell at 50-70% now than be left holdng the bag in January.

If you look closely, many items are marked "Final Sale" which means you can't return it. I'm talking brand new merchandise. It is clear they either don't expect to be open in January or they are trying to limit the returns against December sales because there won't be any January buisness to balance it out.

Lay-offs will likely happen before the end of of the year as well, in order to consolidate payrolls for tax purposes.

reply to post by 12m8keall2c


Yup, just to verify a quick Google of the quote:

General Growth Eyes Bankruptcy

Good job OP on bringing forth the E-mail. As soon as I saw "I read this E-mail" I thought oh god, not another one..

The company – one of the nation’s largest real-estate investment trusts (REITs) – has seen profits turn to losses over the past year as retail sales have faltered and land sales have plunged. In February, General Growth posted a 2007 profit of $287.95 million, or nearly five times the previous year’s $59.27 million, on total revenue that increased 0.2 percent to $3.26 billion. (READ MORE)

Last week, it posted a third-quarter loss of $15.41 million, on total revenue that fell 5.73 percent year over year to $814.70 million. (READ MORE) The company cited a $40.34 million provision for impairment in its master-planned communities division. Occupancy at the retail centers that comprise the majority of its holdings dipped half a percentage point to 92.7 percent, but that decline was partly offset by a 3.8-percent rise in comparable-tenant revenue, General Growth added.

It would appear as if the Commercial Real estate market could see it's first major failure....

Reading the article, apparently they found out just what went wrong....

But it is the credit crunch that has dealt General Growth a potentially fatal blow: A string of acquisitions – including its 2004 purchase of The Rouse Co., with properties including Providence Place and Fanueil Hall, for $7.2 billion (READ MORE) – left the company with billions of dollars in short-term debt.

Short term debts that they cannot pay, resulting in Chapter 11 to protect it's self.. doesn't mean the company will fail, but it will cascade through the markets. Biggest problem facing them now is, if they go with Chapter 11 .. who will finance them?

Oprah?


Seriously,

it is an email. And generally 99.999% of emails are garbage. Any particular reason an announcement would be made midnight on fri night? Not during American business hours. It if it a Eurpean company, they would say, 6 am during such and such time.

I give a thumbs down for bogus and a scare tactic.

if you don't pass this on to 2o people in the next five minutes, you will have bad luck forever.

LOL! ...

Way to read the thread mate.

Classic

I have who is going bankrupt on Friday at MIDNIGHT. Here is the LIST:
www.thecomingdepression.blogspot.com...