Intu fails to guarantee debt closure and risks falling into administration The mall giant is currently trying to implement closure regulations to survive the ongoing pandemic after warning it could breach its debt obligations. The mall operator is now looking for a standstill agreement from its creditors that won`t require it to repay the loans by the end of 2021, with a paying interest rate agreement if you can to maintain stability until the real estate markets calm down. “Some centres have reduced their rental income due to COVID-19 and the money included in their funding agreements, limiting their ability to pay for support (para. B employees of the mall) from other companies in the intu group,” Intu said in a statement. Intu said it could not guarantee that its creditors would accept its plans: “Of course, there can be no certainty as to whether a status quo can be achieved with all or some of the group`s creditors or with regard to the terms,” the company said. Intu said the proposed standstill agreements would allow it to avoid breaches of credit agreements until December 2021. The official statement said: “Intu believes that the best way forward is to achieve stability through such a status quo until market distortions have stabilised and asset valuations and portfolio performance can be better understood by investors and debt providers and risk can be adequately assessed. Once the market distortions are over, there will be more opportunities to explore other capital structures, solutions and divestitures to finally correct the balance sheet. Analysts at broker Peel Hunt said: “While banks may well accept such conditions, also to help businesses get through the Covid-19 crisis, we think they could push for a shorter status quo deal. Last month, Intu announced it would rely on standstill agreements until the June 26 deadline to waive revolving credit facilities. Troubled mall giant Intu said it was seeking standstill agreements with lenders to prevent expected violations of the Convention. Mall operator Intu Properties is seeking status quo deals from its lenders as it struggles to survive after a collapse in retailers` rent payments.
One of the UK`s largest shopping centre owners is looking to strike business-as-usual deals with its lenders to survive the coronavirus outbreak. Intu provided an update on lenders` negotiations to achieve stability through status quo agreements. The mall giant also confirmed that it has hired KPMG to develop contingency plans for the administration in case discussions with stakeholders prove unsuccessful. Intu Properties PLC said it risked falling into administration after its negotiations with creditors on a debt closure failed. In the event that the company is unable to reach an agreement, Intu said all of its real estate companies will be required to pre-fund the administrator to provide central services to shopping malls. “Intu will strive to promote fairness and stability in its standstill proposals, recognizing that in this time of market distortions, there is a risk of competing interests between the interests of stakeholders across the Group. Intu believes that the best way to achieve stability is to “go through such a status quo until market distortions have stabilized and asset valuations and portfolio performance can be better understood by investors and debt providers, and risk can be adequately assessed.” The owner of shopping centres such as the Trafford Centre in Manchester and Lakeside in Essex said discussions on standstill agreements with lenders have been ongoing since they agreed waivers for breach of commitment on some of its properties earlier this month. In the event that it is unable to reach a status quo agreement, the mall operator stated that it would likely fall into administration and that some locations could be closed. “In the event that Intu Properties fails to stop, it is likely that it and some other central units will fall under administration,” the company said. It is currently discussing a financial restructuring with lenders, but could file for bankruptcy as early as Friday, June 26, if a standstill agreement is not reached, according to Property Week.
The troubled mall operator said it was unable to agree on the terms of the debt closure with key stakeholders before the June 26 deadline to waive its revolving credit facility. Points of discussion with stakeholders include, according to Intu`s recent update, the duration of a standstill agreement that should not exceed 15 months, the extent to which creditors will share the future collection of the assessment, and how individual shopping malls will be financed. The company is seeking status quo agreements from its creditors, meaning it would not have to repay what it borrowed by the end of 2021. In addition, he is looking for a paying interest rate agreement if you can to give him some stability until the real estate market calms down. It had already received waivers from some lenders to prevent breaches of its debt obligations until June 26. “Of course, there can be no certainty as to whether a status quo can be achieved with all or some of the group`s creditors or with regard to the terms. While the status quo is at the forefront, it is possible that there will be previous individual violations in the coming weeks under some of the group`s funding, and the group will seek to address such cases as part of broader discussions. “Insights Weekly: The midstream sector wins; the dynamics of credit growth; Insurance mergers and acquisitions on the rise WATCH NOW: Why thoroughbred horse semen is the world`s most expensive liquid More retailers are expected to reopen stores from next month, according to the government`s plan to reopen the economy, but Intu said the “speed of recovery once the UK comes out of lockdown” remains uncertain. Intu bosses hope this will give the group a break until the Covid-19 pandemic is over, at what point Even before the pandemic, Intu was grappling with changes in retail as shoppers moved online and due to its £4.5 billion mountain of debt. . Shares of Intu rose 0.13 pence, or 3%, to 4.46 pence today, hoping for more breathing space. In March, the group revealed how visitor numbers and rents have fallen due to the coronavirus lockdown, with only 29% of the expected rent received for the second quarter, which had risen to 40% in early May.
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