US shopping mall developer the Mills Corporation has received an extension until 2008 to repay its $1bn (£5.1m) loan to Goldman Sachs Mortgage Company.
The US REIT, which was bought last week by Canadian company Brookfield Asset Management for $1.35bn (£690m), has been suffering cashflow problems as it struggled to repay the loan which was due at the end of March.
It said in earlier filings to the Securities and Exchange Commission this month that repayment of the loan by the end of March could force it into bankruptcy. Under the new loan agreement, agreed yesterday, it has until January 30th 2008 to repay its debt.
In the sale of the company agreed last week, Brookfield has agreed to take on the loan and has provided Mills with a $500m (£253m) credit facility to keep the company afloat until the deal closes later this year.