On 23 June 2020, intu properties plc provided an update on discussions with key stakeholders to progress its standstill strategy.
The updates comes ahead of the revolving credit facility covenant waiver expiry at 11:59 p.m. this evening, 26 June 2020.
The business has recovered only 15% of due rental incomes and has £4.5bn debts.
Its share price has dropped 90% in
The statements reads:
‘Since that update, discussions have continued with the intu Group’s creditors in relation to the terms of standstill-based agreements. Unfortunately, insufficient alignment and agreement has been achieved on such terms.
‘The Board is therefore considering the position of intu with a view to protecting the interests of its stakeholders. This is likely to involve the appointment of administrators.
‘A further announcement will be made as soon as possible.
‘The person responsible for arranging the release of this announcement is Susan Marsden, Company Secretary of intu.’
The company is the UK’s biggest shopping centre group, with 17 centres in the UK and three in Spain.
Intu has already lined up administrators KPMG as a “contingency” in case financial restructuring talks with lenders fail.
About 132,000 jobs in the company and in its wider supply chain will be in question should the firm fall into administration.
The company had been struggling before the coronavirus outbreak to fill outlets in some of its centres, and had debts of about £4.5bn.
Intu’s centres were partially shut during the coronavirus lockdown, with only essential shops remaining open.
