KPMG to Appoint Joint Administrators
- Intu officially calls in administrators
- Retail property giant Intu fails to reach standstill agreements with landlords
- James Robert Tucker, Michael Robert Pink and David John Pike of KPMG appointed as joint administrators
- Shopping centres to continue trading under KPMG
- Operating companies unaffected by administration
- Discussions with creditors regarding standstill-based agreements unsuccessful
Intu, the retail property giant, has officially called in administrators after failing to reach standstill agreements with landlords. The company issued a statement admitting its failure to progress its standstill strategy ahead of the revolving credit facility covenant waiver expiry on 26 June 2020. James Robert Tucker, Michael Robert Pink, and David John Pike of KPMG are set to be appointed as joint administrators for the group, with shopping centres continuing to trade under KPMG’s management. Operating companies remain unaffected by this development. Despite discussions with key stakeholders earlier this week, Intu has not achieved sufficient alignment and agreement on standstill-based agreements. The company also revealed a £1.9bn write-down of its shopping centres’ value 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 situation, including details on its financial struggles and the appointment of administrators from KPMG. It also includes relevant background information such as the company’s previous write-down of shopping center values and decreased rental income. The language used is factual and does not include sensationalism or personal opinions.
Noise Level: 3
Noise Justification: The article provides relevant information about Intu’s financial situation and its decision to call in administrators, but it lacks analysis or exploration of long-term trends or possibilities. It also does not offer actionable insights or new knowledge for readers.
Financial Relevance: Yes
Financial Markets Impacted: Intu, a retail property giant, has called in administrators due to financial difficulties and failed negotiations with landlords. This impacts the company’s operations and may affect its stakeholders.
Financial Rating Justification: The article discusses the financial troubles of Intu, a retail property company, and their appointment of administrators from KPMG, which directly pertains to financial topics and has an impact on the company itself and its stakeholders.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Financial Crisis
Impact Rating Of The Extreme Event: Severe
Extreme Rating Justification: Intu, a major retail property company, has called in administrators due to failed negotiations with landlords and significant financial losses. This indicates a severe financial crisis.
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