Intu heads for administration

Intu is set to head into administration after failing to agree a standstill with its lenders. Discussions with key stakeholders had been taking place ahead of the firm’s revolving credit facility covenant waiver expiry. However, in an update, intu said: “Unfortunately, insufficient alignment and agreement has been achieved on such terms.” Its board is now considering the company’s position to protect the interests of its stakeholders, which the firm said would likely involve the appointment of administrators. The business still has until 11.59pm on 26 June to reach a standstill agreement deal, but it has KPMG on standby to take on the role of administrator. In a previous update on 23rd June Intu had said that it was still to agree several points with its lenders. These included the duration of the standstill, which intu had said would not be longer than 15 months; the extent of any future value recovery for creditors at the asset and PLC levels; and how individual shopping centres would be funded, including freeing up money from existing debt arrangements for short-term liquidity. To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette