It has become obligatory for contemporary zombie films to feature a scene set in a mall, so it is somewhat ironic that mall operator Mills Corp. is fast becoming a living-dead company.
The Chevy Chase, Md. firm that owns 38 malls nationwide is staggering under its debt load, which comes due March 31. Consequently, the board has to approve an asset sale by Feb. 15, or it will default on its loan.
However, Mills hasn't filed with the SEC since 2005 making it hard for a potential buyer to value the real estate firm's assets. Thus, pulling the trigger on a deal now, would be like playing Russian Roulette, so it would make sense for a bidder to wait for Mills to file for Chapter 11 bankruptcy protection. While a bankruptcy auction also carries risk for a buyer, the possible discount may be worth the wait.
So who are the would-be zombie slayers? Israeli real estate firm Gazit-Globe has already made a bid. In addition, sources told The Deal that mall operator Simon Property Group Inc. is another possible buyer. —Matthew Wurtzel
See story from Bizjournals.com
See story from Bloomberg
See story from The New York Times
Continue reading below
