Embattled shopping centres owner Intu on Friday said it has secured some crucial breathing space from lenders as it copes with Covid-19 disruption.
The cash-strapped owner of Lakeside in Essex, which has a near-£4.5 billion debt pile, said it has secured waivers for some breaches of certain bank covenants that might have arisen before June. This gives Intu more time to negotiate further with lenders as it tries to fix its balance sheet.
Intu, like rivals, has in recent years suffered from retailers closing shops or demanding rent cuts. Competition from online brands has also hammered the sector. Now Intu also faces disruption from the coronavirus outbreak.
The company today appointed David Hargrave as non-executive director and chief restructuring officer, to help Intu works through its strategy to fix the balance sheet.
Hargrave, a qualified accountant, has previously worked at firms including EY and PwC.
Following the coronavirus outbreak, which has seen a number of retailers have to close shops, Intu is working on rent plans with some tenants that are suffering during the virus crisis.
However, the landlord added: “There are a very small number of cases where customers are not currently engaging with us to find a consensual solution - these are large, well-capitalised brands who have the ability to pay but have chosen not to. In these instances we are prepared to take more robust action to enforce the legally binding terms of those leases.”
