Lenders filed a motion in U.S. bankruptcy court seeking to force a foreclosure sale of a Mainland property owned by one of General Growth Properties Inc.’s subsidiaries, Bloomberg News Service reported today.

Citicorp North America Inc. filed the motion in U.S. Bankruptcy Court in Manhattan, asking for permission to proceed with the foreclosure sale of the Oakwood Mall in Gretna, Louisiana. The mall is owned by Oakwood Shopping Center Ltd., one of General Growth’s debtor units, according to court papers.
The debtor has no equity in the property because a recent appraisal shows it is worth less than the amount of the mortgage, Citicorp said. At the time of General Growth’s Chapter 11 filing in April 2009, the “lenders were undersecured by more than $10 million” and the property is “now worth approximately $75.7 million,” Citicorp’s lawyers said in a court filing.
General Growth is the nation’s second-largest mall operator, whose Hawaii properties include Ala Moana Center and Ward Centers.