Creditors have approved ongoing waivers for the company behind four former intu shopping centres.
SGS Finance, which manages the Lakeside centre in Essex, Watford’s shopping centre, Nottingham’s Victoria Centre and the Braehead Shopping Centre near Glasgow, launched a fourth “consent solicitation” to bondholders and banks last month.
The company requested to waive some of its financial covenants, as well as granting forbearance on a term loan repayment and deferring interest payments on payment-in-kind borrowing by two months to mid-May. The measures were approved by lenders today.
Steve Gray, head of European retail asset management at Global Mutual, asset manager for the properties, said: “Today’s positive vote is the latest example of the continued strong support we have from our lending group. Despite the clear challenges our sector has faced, we have delivered on our strategic plan together with ensuring the financial resilience of our centres.”
SGS said at the time of the consent solicitation that the moves would help to ensure the company “retains a stable financial structure and has sufficient liquidity to deal with the ongoing challenges resulting from Covid-19, ahead of implementing its longer-term financial restructuring”.
Lending secured against SGS comprises £1.15bn in bonds due across three tranches between 2028 and 2035, as well as a loan of £142m due this year.
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