General Growth Properties’ debt comes due

October 01, 2008 06:10PM

Senior executives at South Street Seaport developer General Growth Properties Inc. reportedly built up the company by loading it with debt and increased their own wealth by borrowing heavily to buy its shares. General Growth’s stock has fallen some 73 percent in the past year as investors have worried about the company’s ability to repay its $27 billion in debt, $19 billion of which is due by the end of 2011. Since early August, executives have sold 5.6 million of their shares– for roughly $112 million– largely to meet margin calls.

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