// Intu bondholders drawing up plans which could see them take control of assets
// Law firm Clifford Chance & investment bank Moelis & Company appointed to advise bondholders
Intu could lose some of its key retail assets as early as June, as bondholders reportedly draw up plans to take control of the assets.
Law firm Clifford Chance and investment bank Moelis & Company have been appointed to advise bondholders of £1.3 billion of debt secured against some of Intu’s centres, React News reported.
Lakeside in Essex, Braehead in Glasgow, Watford in Hertfordshire and the Victoria Centre in Nottingham could be seized if Intu breaches debt covenants in June.
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- Coronavirus: Intu cracks down on late rent payments
- Shopping centre owners issue outlook warnings as coronavirus bites
Intu has already acknowledged that a breach of its upcoming debt covenants after it received less than one-third of UK quarterly rent payments.
It received just 29 per cent of rent due on Wednesday across its centres in the UK, compared with 77 per cent of rent for the same quarter last year.
The Covid-19 pandemic has undoubtedly exacerbated a decline in rental income.
Intu employs about 2500 people and owns 14 shopping centres in the UK.
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