Shopping centre owner Intu is set to call in administrators after last gasp rescue talks with creditors collapsed.
In a statement to the London Stock Exchange this morning the group said there had been “insufficient alignment and agreement” on standstill agreements with creditors.
The group 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.”
Intu has until 11.59pm this evening to agree new terms, with KPMG is ready to step in as administrators at any point before the deadline.
The company was in dire straits even before the covid-19 lockdown having built up £4.5bn of debt. It was also facing rent reduction demands from struggling retailers. The coronavirus crisis exacerbated the situation and hastened its demise.
Intu’s shopping centres, which include Lakeside in Essex and the Trafford Centre in Manchester, are now likely to close only a couple of weeks after they re-emerged from lockdown.
KPMG is likely to manage a restructuring of the group in which creditors will take over the equity of the business. However, there is a possibility that the management will be retained in the short term at least to oversee a possible break-up.
The possibility of a fire sale is also on the cards.
INTU : Intu set to collapse into administration