CHICAGO >> General Growth Properties Inc. is anticipating a prosperous holiday season at its Hawaii shopping centers, despite facing the possibility of bankruptcy if it fails to refinance or extend nearly $1 billion in debt due next month.

The real estate investment trust, the nation's second-largest mall owner whose big-name holdings include Chicago's Water Tower Place and Fashion Show in Las Vegas, saw its shares plummet yesterday after warning that it faces solvency trouble and may default on certain debt obligations.

“;It's hard to predict the long-term future in every aspect in Hawaii,”; said James Graham, company spokesman. “;Our Hawaii properties are among the finest in our portfolio. I don't see any reason they should do anything but continue to delight our visitors. But as to how they might figure into our financial future is something we can't predict.”;

General Growth properties in Hawaii includes Ala Moana Center, Ward Centers, Whaler's Village in Kaanapali on Maui and Prince Kuhio Plaza in Hilo on the Big Island. It also manages or markets Windward Mall, King's Shops at Waikoloa Beach Resort, Queen Kaahumanu Shopping Center on Maui and is slated to operate Kapolei Commons in West Oahu.

Despite rumors among local brokers that General Growth is considering selling some its Hawaii assets, Graham wouldn't say if any of the local shopping centers are on the cutting block, only that “;anything could possibly be considered”; in General Growth's portfolio of more than 200 shopping centers nationwide.

“;We would not expect to sell a large percentage of those,”; he said. “;The key is to improve our balance sheets and the sale of some properties could help us do that.”;

General Growth also owns Mall St. Matthews and Oxmoor Center in Louisville, Ky.; Florence Mall in Florence, Ky.; Greenwood Mall in Bowling Green, Ky.; Kingsport Towne Center in Kingsport, Tenn.; Northgate Mall in Chattanooga, Tenn.; Kenwood Towne Centre in Cincinnati; and River Falls in Clarksville, Ind., across the Ohio River from Louisville. Stones River Mall in Murfreesboro, Tenn., is listed on the company's Web site as a third-party managed mall.

Making matters worse is another $3.07 billion in property and corporate debt slated to come due next year.

“;Given the continued weakness of the retail and credit markets, there can be no assurance that we can obtain such extensions or refinance our existing debt or obtain the additional capital necessary to satisfy our short-term cash needs on satisfactory terms,”; the Chicago-based REIT said in filing with the Securities and Exchange Commission.

“;... Our potential inability to address our 2008 and 2009 debt maturities in a satisfactory fashion raises substantial doubts as to our ability to continue as a going concern.”;

General Growth, beset by falling funds from operations and plagued by a tightening global credit market that's making it difficult for companies to obtain financing, is trying to sell off properties and cut costs to weather the rocky economic climate. It's also suspended its dividend and ousted a cadre of top executives. But that hasn't calmed investors, who've sent the company's shares into a virtual free-fall since September.

The company filed its quarterly report late Monday.

Citigroup analyst Michael Bilerman said General Growth's equity holders may still be at risk, even the company opts not to file for bankruptcy protection.

“;There is no quick fix in the current capital-constrained environment,”; he told investors late Monday night.

General Growth shares fell 88 cents, or 64 percent, to 49 cents a share at the close of trading on the New York Stock Exchange yesterday. The shares reached an all-time low of 33 cents earlier in the day.