Intu Properties PLC (LON:INTU), the Trafford Centre and Lakeside owner, has warned it is on the brink of administration after talks with lenders about a debt restructuring made no progress.
Today’s statement said Intu is now considering its position with a view to protecting the interests of its stakeholders.
This is likely to involve the appointment of administrators, it added.
Intu has a standstill agreement on its revolving credit facility that expires at 11:59 pm this evening, (26 June 2020).
Discussions have been ongoing over new terms for the standstill-based agreements, but no agreement has been reached said its statement.
The shopping centres owner said last month it was seeking relief until at least the end of 2021 from testing of its lending covenants, debt amortisation and final payments for any lending facilities coming to maturity.
Earlier this month, Intu said it had fully drawn the existing revolving credit facility of £537mln.
Intu was a member of the FTSE100 a few years ago but was already struggling with a slump in retail sales before coronavirus lockdown restriction forced the closure of most shops at its centres.