Mall of Louisiana owner files for Chapter 11

General Growth Properties, the nation’s second-largest mall owner whose properties include the Mall of Louisiana, filed for bankruptcy protection this morning in one of the biggest commercial real estate failures in U.S. history. General Growth, which owns more than 200 malls, said shoppers at its malls would not be affected by its bankruptcy filing. Mall of Louisiana General Manager Todd Denton was not available for comment. The Chicago-based company is paying the price for its aggressive expansion at the height of the real estate boom. General Growth, like many homeowners during the frenzy, bought several properties at top dollar and now is finding lenders unwilling to refinance. Chapter 11 protection typically allows a company to hold off creditors and operate as normal while it develops a financial reorganization plan. The company had about $29.6 billion in assets at the end of the year, according to documents filed with the U.S. Bankruptcy Court in the Southern District of New York. General Growth said it intends to reorganize with the aim of cutting its corporate debt and extending the terms of its mortgage maturities. The company has a financing commitment from Pershing Square Capital Management of about $375 million to use to operate during the bankruptcy process. Last month, General Growth said it got lenders to waive default on a $2.58 billion credit agreement until the end of the year. But its Rouse Co. subsidiary failed to convince enough holders of unsecured notes worth $2.25 billion as of Dec. 31 to accept a proposal that would let the unit avoid penalties for being behind on its debt payments and give it some time to refinance its debt load.