Russell Lynch at The Telegraph reports that crisis-hit shopping center owner Intu Properties has lined up KPMG to handle a potential administration if efforts to gain breathing space from its lenders fail.
The contingency plans from the owner of Essex’s Lakeside and Manchester’s Trafford Centre, first reported by Sky News, come ahead of critical talks over its GBP4.5 billion debt pile, The Telegraph notes.
Intu’s bank lenders have already agreed a waiver of covenant tests on its debts, which expires on June 26, The Telegraph discloses. Chief executive Matthew Roberts is seeking a wider 18-month standstill to repair the firm’s balance sheet and avoid triggering a raft of repayments to banks and bondholders which would almost certainly tip Intu over the edge, The Telegraph states.
The firm, which has 17 UK centers and 2,000 staff, was already struggling from structural shifts towards online shopping before the Covid-19 outbreak and resultant closure of non-essential shops devastated rental income, The Telegraph relays.