Citigroup blocks longer General Growth extension: report

Crain's Chicago Business reports:

Citigroup Inc. is balking at a nine-month extension on $900 million in debt owed by General Growth Properties Inc. in a bid to gain better terms on a $2.6-billion unsecured loan and line of credit, according to a report.

In a hard-edged move, Citigroup executives had General Growth CEO Adam Metz travel to New York to negotiate the dispute on Nov. 28, the date the loan would have matured, only to snub Mr. Metz by refusing to compromise, the Wall Street Journal reported, citing unnamed sources.

Citigroup would not agree to the extension without General Growth making a change to an unrelated loan and credit line that General Growth got in February 2006, the Wall Street Journal reported, citing unnamed sources. Six other lenders agreed to the extension, the Journal reported.

General Growth on Sunday announced a two-week extension of the loans.

You'll want to read this one.Citigroup and Morgan Stanley recently acquired shares in General Growth.