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Intu's 'administrator-in-waiting' seeking fresh funds - report
11th Jun 2020 10:10
(Sharecast News) - KPMG is allegedly seeking funds to keep Intu Properties' flagship shopping centres open should it go into administration, it was reported on Thursday.
According to Sky News, the Big Four firm - which reportedly has been lined up as potential administer for the UK's biggest mall-owner - has approached bondholders for up to £12m in additional financing.
Quoting unnamed City sources, Sky News said it might not be possible for Intu to continue operating without the funding.
Intu owns the Intu Metrocentre in Gateshead, Manchester's Trafford Centre and Lakeside in Essex, among other centres, and directly employs around 3,000 people. However, it was already battling debts of £4.5bn before the coronavirus pandemic shut its sites, and is now reported to be close to administration, should it fail to strike a deal with lenders.
Neither the company nor KPMG have commented on the reports.
Commercial tenants and landlords are increasingly at loggerheads, with many big name retailers refusing to pay rent during the current crisis, which has forced shops to close.
In March, Intu received less than a third of the money it was owned by retail tenants, and there are concerns that the June quarter could be even worse.
Sky News said that should Intu go into administration, it would be particularly complex and could spark a crisis across the wider commercial real estate sector.
As at 1300 BST, shares in Intu were down nearly 3% at 7.22p. Intu's stock has fallen heavily in recent months; a year previously it was trading at just shy of 90p.
According to Sky News, the Big Four firm - which reportedly has been lined up as potential administer for the UK's biggest mall-owner - has approached bondholders for up to £12m in additional financing.
Quoting unnamed City sources, Sky News said it might not be possible for Intu to continue operating without the funding.
Intu owns the Intu Metrocentre in Gateshead, Manchester's Trafford Centre and Lakeside in Essex, among other centres, and directly employs around 3,000 people. However, it was already battling debts of £4.5bn before the coronavirus pandemic shut its sites, and is now reported to be close to administration, should it fail to strike a deal with lenders.
Neither the company nor KPMG have commented on the reports.
Commercial tenants and landlords are increasingly at loggerheads, with many big name retailers refusing to pay rent during the current crisis, which has forced shops to close.
In March, Intu received less than a third of the money it was owned by retail tenants, and there are concerns that the June quarter could be even worse.
Sky News said that should Intu go into administration, it would be particularly complex and could spark a crisis across the wider commercial real estate sector.
As at 1300 BST, shares in Intu were down nearly 3% at 7.22p. Intu's stock has fallen heavily in recent months; a year previously it was trading at just shy of 90p.