* Intu gives notice to appoint administrators
* Could not reach agreement on debt standstill
* Shares collapse nearly 40% to record low
(Recasts with appointment of administrators, details)
By Yadarisa Shabong
June 26 (Reuters) - Manchester's Trafford Centre owner Intu
became the latest casualty of the coronavirus crisis
on Friday as it goes into administration after failing to secure
a debt repayment holiday from its creditors amid falling rents.
Intu, which owns Lakeside in Essex, out-of-town Merry Hill
centre and several other properties across Britain and Spain,
added that all shopping centres would continue to trade.
The British firm employs around 2,600 staff and has hundreds
of retailers in its centres that get millions of visitors a
year.
It was concerned about its financial prospects even before
the coronavirus crisis but the ensuing lockdown has put a
further stress on its finances as rental payments collapsed due
to store closures that lasted for nearly three months.
According to trade publication Property Week, landlords
collected just 18.2% of commercial rents for the June quarter.
Intu began talks with creditors in May but could not reach
an agreement on the duration of a standstill, how much creditors
would share in any future recovery and funding.
An application is being made for James Robert Tucker,
Michael Robert Pink and David John Pike of KPMG to be appointed
as joint administrators for the group, Intu said, adding that it
was expected to become effective shortly.
With net debt of around 4.69 billion pounds last year, the
debt waiver Intu secured in early-May expires on Friday,
triggering a breach.
Its London-listed shares had collapsed nearly 70% to a
record low of 1.2 pence, valuing the company at around 16
million pounds from a peak of 13 billion pounds in 2006.
Intu said listing of its shares in London and Johannesburg
has been suspended.
"TO THE RESCUE"
In recent years, Intu has been hit by company voluntary
agreements from brands including Debenhams, Toys R Us, House of
Fraser and HMV.
Two years ago, its largest shareholder John Whittaker's Peel
Group made a 2.9 billion pounds approach for the company and
rival mall operator Hammerson offered 3.4 billion
pounds to buy Intu.
"The fact several suitors took a look at the business in the
last couple of years before walking away should have set alarm
bells ringing," said AJ Bell analyst Russ Mould.
"The chances of a white knight riding to the rescue are
practically non-existent at this point."
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Anil
D'Silva and Uttaresh.V; editing by David Evans)
Hammerson (HMSO)
