Shopping Centre Giant Intu on Brink of Administration

  • Intu admits failure in reaching standstill agreements with landlords
  • Discussions with creditors on standstill-based agreements unsuccessful
  • Board considering appointment of administrators to protect stakeholders’ interests
  • KPMG placed on standby for potential administration
  • Intu writes down value of shopping centres by £1.9bn due to retailer issues

Intu, the owner of several shopping centres, has admitted that it has failed to reach standstill agreements with landlords and is likely to appoint administrators. The company had been in discussions with creditors regarding terms for a standstill strategy but could not achieve sufficient alignment and agreement on these terms. Intu’s board is now considering the position of the company, which may involve the appointment of administrators to protect stakeholders’ interests. This comes after KPMG was placed on standby in case of administration. Earlier this year, Intu wrote down the value of its shopping centres by £1.9bn due to retailers entering administration or issuing CVAs and a 9.1% decrease in like-for-like rental income compared to the previous year.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Intu’s financial situation and its potential appointment of administrators. It also includes relevant details about discussions with creditors and the company’s previous actions. However, it could provide more context on the standstill agreements and their implications.
Noise Level: 3
Noise Justification: The article provides relevant information about Intu’s failure to reach standstill agreements with landlords and its potential appointment of administrators, but it lacks in-depth analysis or exploration of long-term trends or consequences. It also does not offer actionable insights or new knowledge for readers.
Financial Relevance: Yes
Financial Markets Impacted: Intu, retail property market
Financial Rating Justification: The article discusses Intu’s financial situation and its potential appointment of administrators, which would impact the company itself as well as the retail property market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk