Intu on verge of administration after talks with lenders fail

Intu on verge of administration after talks with lenders fail
Intu has until midnight tonight to secure a deal for its business, but says it is "likely" to bring in administrators.
// Intu “likely” to appoint administrators after failing to reach an agreement with lenders
// Lakeside, Trafford Centre & Metrocentre owner warns its shopping centres “may have to close for a period” if it falls into administration
// Thousands of jobs are at risk in wake of possible closures.

Retail property giant Intu has said talks with lenders had failed to reach an agreement to save it from falling into administration.

Intu has until midnight tonight to reach a deal, but in a statement this morning it said “insufficient alignment and agreement has been achieved”.

“The board is therefore considering the position of Intu with a view to protecting the interests of its stakeholders,” it said.

READ MORE: Intu to file for administration if crunch talks with lenders fail this week

Intu said it was now “likely” to appoint administrators, and that further announcement would be made as soon as possible.

Earlier this week Intu put KMPG on stand-by as administrators, as it warned that without critical upfront funding from its lenders “there is a risk that centres may have to close for a period”.

Today, covenant tests are due to take place on its lending deals, which Intu is unlikely to pass due to the forced closure of shopping centres for almost three months during lockdown.

The Lakeside, Metrocentre and Trafford Centre owner has been hoping to arrange a standstill agreement with lenders, and warned that a collapse of its business would place thousands of jobs at risk.

with PA Wires

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  1. Sad news about Intu. I’m very suspicious about lenders not supporting standstill on lending finances, and the many thousands of jobs which will be lost if the company goes under. Have the lenders got some foreign entity, e.g Chinese, Middle East, waiting in the wings to snap up another UK company at a bargain price and damn the shareholders ?


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