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This cash flow projection shows that Intu is even more broke than we already knew. The lowlights identified so far include two real gems:
The crown jewels - The Trafford Centre - is barely washing it's face. £12m net cash projected at 30th June falling to £5m net at 31st December next year. Metrocentre Newcastle is going backwards from £5m cash now, to zero at 31/12/2021.
Unfortunately as has been the case before (Derby), this Intu release is remarkable for what it fails to tell the punters. Today's big fail is the two line items, "Interest, net of deferred". Oh Yea? Just how much interest are they looking to defer? Well, the March accounts showed interest paid for the year of £224m, which suggests £112m for the half-year and that's confirmed by the results to 30/06/19 which showed a tad over £113m interest paid.
But this RNS shows a projected total of just £63m for "Interest, net of deferred", being paid to 31/12/20, which suggests that Intu are now asking the creditors to defer £50m of interest they can't pay. For 2021, the total is projected at £147m. That's £77m less than 2019, which means another eight-figure bath for the lenders.
So the positive, so-called, "Closing Cash" numbers for both periods are purest fiction. The +ve £24.1m for 2020 is really negative £26.1m and for 2021 the wonderful positive £62.6m is really a minuscule +£12m, less the 2020 shortfall brought forward of £26.1, for a net negative £14m for the 18 months.
Thus the centres aren't washing their faces at all, and this is before the lenders agree to forego the £100m of penalty payments now due for all the covenant busting that's going on through the LTV's and Income vs. Interest covenants that have been breached. So to my untutored eye, Intu are not only asking for forgiveness of penalty payments, they're asking to cut the interest payable by at least 1/3rd too.
That amounts to almost £250m - a quarter of a billion pounds. Frankly, I'm beginning to wonder how the LSE can continue to permit Intu to trade? The lunatics have taken over the asylum, with almost 100 million shares traded so far this morning at prices between 6 and 12p, for a company that is as financially dead as Monty Python's parrot.
What a non sensical deramping post...could have saved some time there with the write up lol
shorts need to close https://shorttracker.co.uk/company/GB0006834344/
That has to be the funniest post I've read in my short time on here. Quite superb. Thanks for making me laugh. Keep up the good work. Good luck all. Whichever way you call it.
We’ll should see more close during course of day..and news of agreement could also come..so interesting times ahead..
Meanwhile more bad news at the coaface
Monsoon Accessorize has reportedly warned landlords that they have a week to offer up rent waivers or it will permanently close down stores.
The fashion retailer announced last week that it is on the brink of falling into administration, which could place 3500 jobs at risk of redundancy.
Landlords were issued the ultimatum in a letter as the retailer scurries to find ways to survive during lockdown, The Telegraph reported.
Sain give it a rest. You called it wrong. Take it on the chin and jog on.
Tut tut the train is leaving Ikea opening 3 hour sue already people will spend spend spend
Agree. Sentiment rapidly changing in retail...
I'm really struggling to see what is wrong with gewillia's analysis. LTV covenants likely to become an issue soon as well
What's wrong with it... Its wrong
Stretchum
Nothing like ignoring some factual info to keep the juices flowing . This standstill agreement means a Hobsons choice for lenders
Unless you accept you will get SFA trying to sell these today or do you want to take a lesser one later
However that doesn't hold with the bondholders who don't have to forego anything ,go straight to the head of the queue , ringfence and see the majority of their stake back within months
But how is it wrong?
It does look like a good point on the deferred interest? Overall the total interest cost this year should be less than last year due to the disposals over the course of last year which aren't factored into the analysis but notwithstanding that it seems to raise some valid questions.
Don't buy any then guys. Leave the profit to me
About to move up quickly. Dyor
15p +....possibly today...