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Intu goes into administration but shopping centres to stay open
26th Jun 2020 07:48
(Sharecast News) - Intu Properties said on Friday that it has gone into administration but its shopping centres will remain open.
The owner of Lakeside and the Trafford Centre had said earlier in the day that it was likely to call in administrators after failing to reach a standstill agreement with its lenders.
It said that since its update earlier in the week, discussions have continued with creditors over the terms of standstill-based agreements. However, "insufficient alignment and agreement has been achieved on such terms".
The company's revolving credit facility covenant waiver is due to expire on Friday evening.
"Underlying group operating companies remain unaffected and all shopping centres are continuing to trade," it said. "The Intu Group's relationships with its tenants are with these operating companies, not the companies entering administration.
"The shopping centre operating companies have or are expected to enter into transitional services agreements with the administrators of the central entities to ensure continuity of service provision by the central entities to the individual shopping centres."
Intu had already warned on Tuesday that it could go into administration and said it had appointed KPMG to "contingency plan" for that eventuality.
The company's shares have been suspended from trading in London and Johannesburg.
The owner of Lakeside and the Trafford Centre had said earlier in the day that it was likely to call in administrators after failing to reach a standstill agreement with its lenders.
It said that since its update earlier in the week, discussions have continued with creditors over the terms of standstill-based agreements. However, "insufficient alignment and agreement has been achieved on such terms".
The company's revolving credit facility covenant waiver is due to expire on Friday evening.
"Underlying group operating companies remain unaffected and all shopping centres are continuing to trade," it said. "The Intu Group's relationships with its tenants are with these operating companies, not the companies entering administration.
"The shopping centre operating companies have or are expected to enter into transitional services agreements with the administrators of the central entities to ensure continuity of service provision by the central entities to the individual shopping centres."
Intu had already warned on Tuesday that it could go into administration and said it had appointed KPMG to "contingency plan" for that eventuality.
The company's shares have been suspended from trading in London and Johannesburg.