12th Jun 2020 07:47
(Alliance News) - Intu Properties PLC needs GBP12 million in funding to keep some of its UK shopping centres in operation during a potential administration process, Sky News reported on Thursday.
On Saturday, the Sky reported that Intu has put administrators on hold, as it struggles to survive the coronavirus pandemic. The shopping centre owner will turn to accountant KPMG if lenders refuse to grant a standstill on its vast debt obligations, according to Sky.
On Thursday, Sky News reported that bondholders of the Intu units which directly own Intu Metrocentre in Gateshead and Manchester's Trafford Centre have been asked by KPMG for GBP12 million in extra funds.
https://news.sky.com/story/coronavirus-intu-administrator-seeks-12m-funding-12004670
The past few months have been difficult for the Lakeside shopping centre owner.
The London-headquartered real estate investment trust reported revenue fell by 39% to GBP542.3 million in 2019, and its pretax loss widened to GBP2.02 billion from GBP1.17 billion.
In mid-May, Intu said it would need standstill arrangements in place to prevent breaching banking covenants or financial liquidity requirements.
These standstill-based agreements would seek relief for Intu from covenant testing, debt amortisation, and maturity payments until no later than the end of 2021.
The firm announced at the start of May that it had obtained a waiver for some breaches of its revolving credit facility through to June 26 and was talking with "key stakeholders", while assessing its options including a possible standstill.
In early March, Intu was unable to launch a fundraise amid uncertainty in "equity markets and retail property investment markets", heaping even more pressure on the firm.
By Eric Cunha; [email protected]
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