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Update on creditor discussions
INTU PROPERTIES PLC
(Registration number UK3685527)
ISIN Code: GB0006834344
JSE Code: ITU
LEI: 213800JSNTERD5CJZO95
23 JUNE 2020
UPDATE ON CREDITOR DISCUSSIONS
On 18 May 2020, intu gave an update on lender discussions, in particular
looking to achieve stability through standstill-based agreements with
relevant financial stakeholders across its structures, at both the asset
and group level.
Since this update, intu has been in discussions with key stakeholders to
progress this standstill strategy ahead of the revolving credit facility
covenant waiver deadline of 26 June 2020.
In order to agree the standstill, points under discussion include:
- the duration of the standstill, with some stakeholders wanting a
duration of less than 18 months. At this stage it is not expected
that the duration will exceed 15 months
- the extent and basis to which creditors at the individual asset level
will share (to the extent it exists after the repayment of debt,
accrued interest and applicable break costs) in any future valuation
recovery; and creditors of intu properties plc may also benefit
(including possibly by way of future equitization of PLC debt)
- how the operations of individual centres are to be funded. Some
centres have reduced rent collections as a result of Covid-19 and
cash trapped under their financing arrangements which restrict their
ability to pay for support (such as shopping centre staff) from other
entities in the intu group. Securing additional funding in centres
funded by bond structures is more difficult to achieve and, in this
connection, consent will be sought shortly from the stockholders of
intu Debenture PLC to authorise the trustee to release certain monies
within the existing debt structure to be used for short term
liquidity needs. Other centres may also require cash injections for
these purposes
This all remains subject to further negotiations, with no certainty as to
whether intu will achieve a standstill, or on what terms or for what
duration. Further announcements will be made as appropriate.
Notwithstanding the progress made with lenders, intu has also appointed
KPMG to contingency plan for administration. In the event that intu
properties plc is unable to reach a standstill, it is likely it and certain
other central entities will fall into administration. In this situation,
all property companies would be required to pre-fund the administrator to
provide central services to the shopping centres. If the administrator is
not pre-funded then there is a risk that centres may have to close for a
period.
The person responsible for arranging the release of this announcement is
Susan Marsden, Company Secretary of intu properties plc.
ENQUIRIES
intu properties plc
Matthew Roberts Chief Executive +44 (0)20 7960 1353
Robert Allen Chief Financial Officer +44 (0)20 7960 1360
Adrian Croft Head of Investor Relations +44 (0)20 7960 1212
Public relations
UK: Justin Griffiths, Powerscourt +44 (0)20 7250 1446
SA: Frédéric Cornet, Instinctif Partners +27 (0)11 447 3030
JSE Sponsor:
Merrill Lynch South Africa (Pty) Limited
Date: 23-06-2020 08:00:00
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