Today on CNBC, Tom Nolan CEO of General Growth Properties a mall owner and leaser to retail stores said his business model was still strong, even though his company is declaring bankruptcy and the company was not given approval to refinance thier debts any longer.
Interesting.........
His company, he mentioned had a solid NOI (Net Operating Income) and his shopping centers had 92.5 percent occupancy. Thats nice, but General Growth is 27 billion dollars in debt! How can your business model be strong if you 27 billion dollars in debt!
I am sure retail and credit pinches only excerbated the problem, but eventuallly 27 billion of debt is going to catch up to you sooner or later, especially if you business model over the last 15 years was an, "agressive mortgage finance acquisition strategy."
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