Shopping Centre Giant Intu Faces Administration Threat

  • Intu places KPMG on standby for potential administration
  • £2bn loss reported for the year ending 31 December 2019
  • Value of shopping centres written down by £1.9bn
  • Like-for-like rental income decreased by 9.1%
  • Intu seeks to raise cash through asset sales, refinancing and lender negotiations

Shopping centre owner Intu has reportedly placed KPMG on standby in case it falls into administration. The company is seeking to raise extra funds through asset sales, refinancing its £4.5bn debt and negotiating with lenders after reporting a £2bn loss for the year ending 31 December 2019 and writing down the value of its shopping centres by £1.9bn. Intu has requested an 18-month grace period from debt facility maturities and covenant tests as it faces potential administration.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the financial situation of Intu, including details about its debts, losses, and plans for raising funds. It also includes relevant background information about the company’s assets and actions being taken to address its issues.
Noise Level: 3
Noise Justification: The article provides relevant information about the financial situation of Intu, a shopping centre owner, and its potential need for KPMG’s assistance in case of administration. It also mentions the company’s efforts to raise funds through selling assets and refinancing debt. However, it lacks analysis or exploration of long-term trends or consequences on those who bear risks.
Financial Relevance: Yes
Financial Markets Impacted: Intu’s financial situation and potential impact on retail real estate market
Financial Rating Justification: The article discusses the financial difficulties of a major shopping centre owner, Intu, which may lead to administration and its plans to raise extra funds or sell assets. This has implications for the company itself as well as the retail real estate market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk