General Growth Properties Inc., struggling to avoid a bankruptcy filing, remained locked in talks Sunday with bondholders it was trying to persuade to accept reduced terms.

The big mall owner has been fighting for months to dig out of $27bn of debt as the recession drags down retail sales. Its balancing act got tougher last week after it missed a payment deadline on $395m of bonds.

The company had been in negotiations with several dozen banks over past-due debt. Now, it also must deal with hundreds of bondholders, many with divergent interests.

Wall Street Journal