Intu prepares for administration amid creditor talks

Trafford Centre

Troubled shopping centre operator Intu Properties plc said on Tuesday it has appointed KPMG to plan for a potential move into administration and that it is continuing talks with creditors on a possible debt standstill that could save the company.

Intu runs Manchester’s Trafford Centre and Arndale Centre, Newcastle’s Eldon Square, Gateshead’s Metrocentre and Glasgow’s Braehead. Its share price has fallen about 95% in the past year.

According to Reuters data, Intu has net debt of £4.69 billion and had losses of over £2 billion in 2019.

In a stock exchange statement, Into said: ” … Notwithstanding the progress made with lenders, Intu has also appointed KPMG to contingency plan for administration.

“In the event that intu properties plc is unable to reach a standstill, it is likely it and certain other central entities will fall into administration.

“In this situation, all property companies would be required to pre-fund the administrator to provide central services to the shopping centres.

“If the administrator is not pre-funded then there is a risk that centres may have to close for a period.”