Local mall operator says it's at risk for default

(File photo: Mark Wilson/Globe staff)

The mall operator whose portfolio includes such local shopping centers as Natick Collection (above), Faneuil Hall Marketplace, and Providence Place warned that it faces solvency trouble.

Shares of General Growth Properties Inc. fell yesterday after the Chicago-based real estate investment trust said it may be forced to file for bankruptcy if it can't refinance or extend nearly $1 billion in debt due next month.

The company also disclosed in a regulatory filing late yesterday that it may default on certain debt obligations. General Growth has been trying to sell off properties and cut costs to weather the rocky economic climate.

But its shares have been falling since September. Yesterday they dropped another 64 percent, reaching an all-time low of 33 cents per share before recovering to close at 49 cents per share in New York Stock Market trading. To read a recent Globe story about some of the challenges facing the Natick Collection mall, please click here. (AP)