U.K. retail giant Intu heads into administration
U.K. retail REIT Intu has announced it is heading into administration after failing to agree a debt standstill agreement with creditors that would have saved the company.
The company, which owns 17 high-profile shopping centers in the United Kingdom and Spain, had until 11:59 p.m. U.K. time on June 26 to secure a standstill agreement that would have detailed how operations in those centers would be funded. Intu is currently collecting one-third less rent at some of its flagship malls than it was a year ago, putting it in breach of agreements made with lenders financing its retail properties.
In a statement made on the morning of June 26, Intu said that discussions had been ongoing with its creditors in relation to the terms of standstill-based agreements. “Unfortunately, insufficient alignment and agreement has been achieved on such terms,” it said. “The board is therefore considering the position of Intu with a view to protecting the interests of its stakeholder