UK’s Intu heads into administration as debt talks fail
LONDON (UK) – Intu Properties, which owns Manchester’s Trafford Centre and Lakeside in Essex, said on Friday it was headed into administration after failing to reach a debt standstill agreement with its creditors.
Intu, which has KPMG as a stand-by administrator, had warned earlier this week that it may have to close some of its outlets if it fails to get funding. It employs around 2,600 people in several shopping centres across Britain and Spain.
Retailers were forced to shut stores for nearly three months due to the lockdown, pushing some of them into administration, while others slashed costs and struggled to keep up with their rent payments.
Intu, which began talks with creditors in May, had said on Tuesday the main sticking points of the debt talks were the duration of a standstill, how much creditors would share in any future recovery and funding.
“Unfortunately, insufficient alignment and agreement has been achieved on such terms,” it said in a statement. The debt waiver it secured in early-May expired on Friday.
Its lenders include Bank of America, HSBC, Barclays, Credit Suisse, Lloyds, Natwest and UBS.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field