Employees at collapsed shopping centres group Intu Properties should be paid all their wage arrears up to £800 each, administrators said today, although prospects for unsecured creditors remain unclear.
In an update to investors today, administrator KPMG said they expected unsecured creditors would get a dividend but could not give any indication of how much.
KPMG said its fees for the work would be £16 million as it disentangles the business, which has different owners of the various parts.
Intu Properties was the stock market quoted holding company of the real estate investment trust that owned, or co-owned, the 18 Intu shopping centres. Each mall was held in a separate subsidiary property company with their own lenders and investors. The group consisted of more than 200 different entities, the adminstrators said today.
Tough trading conditions and huge debts triggered its collapse after a City fundraising effort failed.
Within the Intu Properties top company, KPMG said it had found £87 million, at Liberty International Group Treasury, a financial division, £62 million and at Intu Retail Services, £2 million.
Overall costs of the administration would come to £100 million, £89 million of which would be borne around the group companies, with the £11 million paid out of the plc's funds.
