Large UK mall operator Intu may close sites over funding struggles - Business Insider

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Some of the UK's biggest shopping centres are at the risk of shutting down as malls giant Intu struggles with funding

, Intu announced it would rely on standstill agreements until a revolving credit facility waiver deadline on June 26.

According to Intu's latest update, discussion points with stakeholders include the duration of a standstill agreement, which is not expected to exceed 15 months, the extent to which creditors will share future valuation recovery, and how its individual shopping centres will 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 from other entities in the intu group," Intu said in a statement.

In the event that it is unable to reach a standstill agreement, the mall operator said it is likely to fall into administration, and that some sites could close.

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