Talks with creditors collapse as intu prepares for administration
Talks between shopping centre operator intu and its lenders have collapsed, leaving the future of its West Midlands mall in doubt.
The company announced this morning that discussions over installing a standstill agreement on its revolving credit facility had ended in “insufficient alignment” on terms.
intu warned earlier this week that if it fell into administration it might have to close its shopping centres. It has appointed KPMG to prepare itself for the process.
The struggling shopping mall operator, which owns the Merry Hill complex, had confirmed that it was in discussions with lenders about a standstill agreement, which, intu said wouldn’t extend past 15 months. The firm had originally asked for an 18 month agreement.
A statement from intu said: “The Board is therefore considering the position of intu with a view to protecting the interests of its stakeholders. This is likely to involve the appointment of administrators.
“A further announcement will be made as soon as possible.”