Intu Properties Share Discussion Threads

[libertine] 16/6/2020 07:50

Eurofund Group, Intu's minority partner in its Costa del Sol retail and leisure destination, has made a bid to buy out the struggling UK REIT's ...

[zcaprd7] 15/6/2020 14:17

Accrington Observer: Intu reveals plan to keep shoppers safe as people flock to the Trafford Centre.https://www.lancs.live/whats-on/shopping/intu-reveals-plan-keep-shoppers-18423354

[zcaprd7] 15/6/2020 14:16

Birmingham Live: Watch as huge queues snake through intu Merry Hill as shops reopen.https://www.birminghammail.co.uk/black-country/watch-huge-queues-snake-through-18421860

[zcaprd7] 14/6/2020 00:06

Hardly surprisingly:https://www.nottinghampost.com/news/nottingham-news/everything-know-far-intu-broadmarsh-4223073

[hpcg] 11/6/2020 13:10

I wonder what the correlation is between recent INTU longs also having recent longs HTZ, LTM, CHK in the US?

I would have thought INTUs inability to deal with Frasers / Debenhams is a reason why it might be benficial for bondholders to install new management. Retail properties are simply worth less that what they traded for just about any time since the GFC. Specifically for INTU they are now worth less than the sum total of the debt carried by the company. It doesn't get much simpler.

[monte1] 11/6/2020 11:14

LOL


Let’s hope their operational management is streets ahead of their strategic leadership.


......It is unclear whether an alternative asset manager with Intu's expertise or negotiating power would be available........

[libertine] 11/6/2020 11:11

Posturing by KPMG, as they start to earn their retainer, and remind the lenders this could get very messy, and costly, if they make the wrong decision.

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``People close to the company believe its lending syndicate is likely to demur from forcing it into insolvency because of the potential value destruction that would occur.

Securing alternative managers of large shopping centres as the retail sector attempts to recover from COVID-19 would be an uncertain process, according to insiders.

It is unclear whether an alternative asset manager with Intu's expertise or negotiating power would be available.``

[daagolme2020] 11/6/2020 10:05

hxxps://news.sky.com/story/coronavirus-intu-administrator-seeks-12m-funding-12004670

Is this positive or negative for Intu?

[zcaprd7] 10/6/2020 09:45

Good, do the banks want all these ongoing legal disputes to manage? They launched loads of them last month...

[nickrl] 10/6/2020 08:38

INTU playing hardball with Debenhamms so gone from Metrocentre, Watford & MK

[zcaprd7] 10/6/2020 01:16

I agree, that's why they should have sold up when the had the chance... We're not talking about a glorious business, it's down to option price pennies for a reason, but if they can somehow cling on, the risk reward could be tasty.

[ericshunn] 09/6/2020 18:46

Didnt mean to be. The structural change in retail and the distressed balance sheet has been evident for a long time. This should have been addressed years not months ago.

[zcaprd7] 09/6/2020 18:09

We are perfectly familiar, Mr patronising, we just don't think it will happen...

[ericshunn] 09/6/2020 17:32

Debt holders will own these assets within weeks, equity holders just have to bend over and take it, in this case to 0pps.

[libertine] 09/6/2020 17:19

The company has not defaulted on it`s debts at the present time.

Default could occur on 26th June, if there is no agreement by that time and they are unable to meet their obligations or satisfy the covenants. Then the lenders can enforce their security.

So then the lenders can force the company into administration and the assets of the company can be sold to repay the company debts.

It is claimed that the asset values barely cover the outstanding debts.

So this requires willing buyers to come forward who can afford, and who are willing, to pay the present market values in order for the lenders not to suffer a shortfall.

It also requires new owners who are capable of taking over the running of such a business.

Finding either of these is not going to be easy in the short term, otherwise some of the assets could have been sold already to reduce the debts.

It`s a buyers market at the present time and the banks are not in the business of running retail outlets.

I`m sure they are aware asset values can go up as well as down, and time could allow a much better outcome than a forced sale.

An agreement will be reached and the company will be given the requested time to reorganize the balance sheet with a few extra penalties.

It just makes the most sense all round, and you never know the government may get involved!

[hpcg] 09/6/2020 15:42

Why are investors unfamiliar with the concepts of the 2006 Companies Act and the 2016 Insolvency rules?



Indeed the UK is moving even closer to the US Chapter 11 code with this year's bill:



The objective is to protect the business activity, including to a proportional extent employment, while restructuring debts such that the business is able to trade normally and profitably. Companies are only liquidated where they are structurally broken, which is to say operationally loss making.

[fft] 09/6/2020 15:29

LynmeeThe new owners will start off with a clean(ish) sheet so removing the debt (interest payments, capital repayments etc) issues which bought INTU down.The losers will be shareholders and people at the back of the queue for repayment.

[monte1] 09/6/2020 15:17

#144

The operational issues don’t change but as has been pointed out several times, if the banks do not move before the bond-holders have a right to, then they will lose the opportunity to take control of the assets that their debt is secured against.

[lynmee90] 09/6/2020 15:13

But if the ownership changed will they not just face the same issues as the current owners Intu? I guess I am trying to see what benefit there really is to let Intu go under in this current climate particularly.

[monte1] 09/6/2020 14:56

There will be no net redundancies as a result of an ownership transfer to the banks and there will be no destruction of value - other than for shareholders and bond holders. There will be paper transfers of ownership and management (O, M & R) responsibilities. Redundancies arising from the inability of tenant retailers to operate a viable business will happen irrespective of whether intu continues to own the assets or any orher party/ parties.