Intu is seeking standstill-based agreements with creditors as it struggles with the Covid-19 disruption and expected covenant breaches.
The shopping centre owner said it would “likely” breach its covenants at the end of June and is negotiating with its lenders to freeze its debts during the pandemic.
Intu secured debt waivers until June 26 earlier this month, and said the standstill agreements would seek to allow it to halt testing and repayments of debt facilities until no later than December 2021.
Intu said it would aim to achieve stability moving forward through the standstill until the market dislocation has stabilised and asset valuations and portfolio performance can be better understood by investors and debt providers.
The company said the agreements would seek a pause from “financial covenant testing, debt amortisation and facility maturity payments” up until the end of 2021.
Against this backdrop, Intu said it was unable to pursue other investment options to address its debt shortfall.
Meanwhile, discussions with lenders around these terms were ongoing.
The news comes after Intu drafted in restructuring expert David Hargrave in a bid to bring its £4.5 billion debt pile under control.
Intu also appointed Vodafone’s former head of HR James Saunders on Thursday to the newly-created role of chief people officer as part of its five-year strategy.
Saunders is expected to bring a new focus to its people strategy, and “lead Intu’s employee experience, and attract, inspire and retain talent within the business”.
Retail Gazette has contacted Intu for comment.
Source – retailgazette.co.uk