Intu seeks debt standstill as it braces to breach covenants

Intu Metrocentre in Gateshead

Retail property titan Intu has warned that it is “likely” to breach its covenants next month and is negotiating with lenders to freeze its debts during the coronavirus pandemic.

The Manchester Trafford Centre owner said it expected to breach its debt commitments next month as it would collect minimal rent from its tenants due to mandated store closures amid the coronavirus pandemic.

Intu said that against this backdrop it was unable to pursue other investment options to address its debt shortfall. The property firm said that, as a result, it believed “standstill-based agreements with relevant financial stakeholders across its structures, at both the asset and the group level, are the best course of action and its primary focus to maximise value”.

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