Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Thank you for the invitation, Heaveho. Talk about being offered a poisoned chalice!
If I knew the answer to your question, I would be either long, or short, ten million shares. As it is, I have no position.
My hunch, and it is just a feeling, is that at a time when the Government and Bank of England are busting a gut to keep businesses open, very few lenders will be keen to push anyone into administration. Thus, my hunch (and remember this is how Trump runs the US!) is that Intu's lenders will forbear in June, should Intu be unable to pay any penalties due on its' LTV and other covenants.
But, before that, I think the crunch will come when Rothschild's report back to the board, whenever that happens. Either they'll succeed in putting together a "Scheme of Arrangement" which includes a Debt-Rescheduling and a substantial fresh Capital Injection, from parties presently unknown. Or, they'll fail. The former would almost certainly include Debt for Equity swaps, diluting the current PI's. The latter would be the kiss of death, as it means some banker wants to foreclose now on some asset.
The fact that the SP is 5p and not close to 40p, seems to indicate the market's view on Rothschild's likelihood of success.
Heaveho
Think I will leave that one to Gewillia! This would come under the heading of distressed sales where its impossible to predict how low or anticipate a special purchaser
The prospect of trying to sell assets in a market trying to guess when lockdown ends would make it very unlikely that anyone would want to put INTU in administration at this moment in time or at least hope not!
This is a litmus test nobody would want to take which could severely damage the whole market
Certainly if some of the smaller centres were openly offered possibly pushing towards double figure yields if offered today it wouldn't be a happy result . Derby , I suspect that INTU are currently receiving no income at all , and very little value there is really only 1 buyer their partner.
However its a fast changing environment
What will be an important event is the outcome of the Orion/ Hammerson £400m portfolio sale which is due to complete on the 23rd April .That will give everyone a much clearer picture of where the market stands at the moment
In Zarogaza , there is a positive feeling that the heavyweight purchasers are likely to see this acquisition through
Certainly if they don't this is likely to cause INTU a problem as its clear that they had already factored in the completion monies Mid-May has been the indicative date there
A good ending to the week on the SP and certainly still on a rollercoaster ride where maybe some more retail casualties appearing .The outcome very unpredictable
Here is the latest forecast which doesn't make happy reading
"The Centre for Retail Research forecasts that the lockdown will have a severe impact on the retail sector, most of which was in a poor state even before coronavirus. It will survive a long lockdown only with great difficulty. Department store groups, fashion and footwear, large general stores as well as the smaller independents are most vulnerable. We estimate that in 2020, a total of 20,622 stores will close (against 16,073 in 2029) and job losses will rise to 235,704 people (against 143,128 last year).
Retailing will have suffered a large drop in sales this spring and early summer. By the end of the year we expect aggregate retail sales to be -4.8% below last year’s total. Even by
the end of 2021, retail sales will still be lower than in 2019, but by 2022 retail sales should have recovered."
To Sain@vision and dewillia, if intu went intu administration today, what will shareholders be left holding once all assets were sold off and debt paid.