Intu restructuring plan in works; assets securing bonds drop in value

By Wendy Van Sickle

Columbus, Ohio, March 18 – Intu Debenture plc received a valuation report on March 18 on the properties securing its £354,876,000 5.562% first mortgage debentures due 2027, according to a filing with the London Stock Exchange.

The property valuation schedules show a depreciation of the properties’ individual values of between 13.15% to 14.52% from the values at Dec. 31, 2020.

The total valuation of the properties fell by £23.75 million to £143.5 million at Dec. 31, 2021 from £166.9 million at Dec. 31, 2020, the issuer reported.

During 2021, negative rental growth across the market adversely impacted estimated recovery value and poor investor sentiment during the first half in the investment market adversely impacted yields, and these factors contributed to the decline in the valuations, Intu said.

Further, Intu said it is finalizing a revised business plan and is engaging with an ad hoc group of holders of the debentures in connection with the plan. The company said it continues to work toward a restructuring and expects to call a meeting for holders to consider an extraordinary resolution regarding its proposed restructuring and revised business plan in the second quarter of 2022.

Simmons & Simmons LLP is representing Intu.

Alvarez & Marsal Europe LLP and Milbank LLP have been retained as financial and legal advisers to the ad hoc group of debenture holders.

The British REIT focuses on shopping center management and development.

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