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The Honolulu Advertiser
Posted on: Wednesday, December 10, 2008

Hawaiian Dredging sues Ala Moana owner for $9.15M

Advertiser Staff

Hawaiian Dredging Construction Co. has sued to collect $9.15 million from the financially strapped owner of Ala Moana Center.

The claim was filed yesterday against parent company General Growth Properties Inc. and two subsidiaries, GGP Ala Moana and GGP Kapiolani Development.

It alleges that General Growth Properties contracted with Hawaiian Dredging in September 2006 to furnish labor and material for improvements to Ala Moana Center.

Hawaiian Dredging alleges it is still owed $9.15 million for those services.

General Growth Properties, a Chicago-based commercial real estate owner and shopping mall operator, said last month it was facing bankruptcy if it could not refinance $900 million in debt.

The firm announced Dec. 1 it had received a two-week extension to renegotiate those loans.

In a filing with the federal Securities and Exchange Commission in November, General Growth said it faced nearly $3.1 billion in maturing debts in 2009 and warned that failure to refinance those obligations would raise "substantial doubts as to our ability to continue as a going concern."

In recent weeks, several contractors and vendors of General Growth and its subsidiaries here have filed liens against the companies for unpaid bills.

Shares of General Growth rose 3 cents to $1.58 yesterday on the New York Stock Exchange.