Shopping centre owner Intu has admitted that it has so far failed in reaching standstill agreements with landlords and therefore is “likely” to appoint administrators.
On 23 June 2020, Intu provided an update on discussions with key stakeholders to progress its standstill strategy ahead of the revolving credit facility covenant waiver expiry at 11:59 p.m. this evening (Friday 26 June 2020.)
Since that update, however, Intu has said that discussions have continued with its creditors in relation to the terms of standstill-based agreements but “insufficient alignment and agreement” has been achieved on such terms.
Intu added: “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.”
The news comes after it was revealed that Intu had reportedly placed KPMG on standby in case it was to fall into administration.
Earlier this year, Intu revealed it wrote down the value of its shopping centres by £1.9bn after a number of retailers that occupy space at its centres entered administration or issued CVAs. It also revealed that like-for like rental income decreased by 9.1% compared to the previous year.