2020 06 07 Intu and more news
ICSM Credit Insolvency News: Intu on the brink; Travelodge’s CVA; Spicer’s and Simon’s debts; and Mann Haulage are liquidated
News in brief from ICSM Credit, the nation’s leading business and industry credit intelligence group.
Travelodge: In May the budget hotel chain said they were considering a CVA in order to inject liquidity into the business. This week the hotel firm are reported to have requested £40m from shareholders to increase their borrowing allowing them to keep all their hotels open provided landlords agree to rent deals. Since it falls to the landlords to agree the rent reductions and repayment plans it remains unclear it the plan will be accepted.
SPOT Spicers Office Team: It’s emerged that SPOT owed the paper merchants £3m when they entered administration in May with one supplier owed £1.86m. According to Print Week administrators Hunter Kelly and Charles King at EY, Spicers Limited owed creditors £44.5m at the time and OfficeTeam Ltd owed creditors just over £37m. Jo Francis wrote: “A raft of printing companies, from SMEs to large web offset printers and specialist suppliers, are also listed among the creditors.” Ouch.
Haulage fail: Mann Haulage in Chester-le-Street have been liquidated after a planned rescue bid failed reports Chris Tindall in Motor Transport. He wrote: “Liquidators from FRP Advisory were appointed to the business on 19 May after it lost its battle with financial difficulties that stemmed back two years. The haulier had operated out of the North East since 2004 and held an O-licence authorising 12 HGVs and 24 trailers and ran a mixed fleet of 7.5-tonne, 18-tonne and 26-tonne.”
Construction woes: Dave Rogers in Construction reports that failed building firm Simons owed 600 creditors a total of £13m last year once the claims were added up. He wrote: “Administrator’s progress report unable to say how much out-of-pocket firms will get back. An update from the administrator of collapsed contractor Simons Group has said around 600 creditors have sent in claims totalling more than £13m. But the figure is around a quarter of what FRP Advisory said was owed by the Lincoln firm to unsecured creditors in January – suggesting many have given up on getting back anything they are owed.” The firm collapsed last October.
Shopping mall critical: the Mail on Sunday’s Neil Craven and Harriet Dennys report the shopping mall giant Intu are on the brink if collapse. They own the Trafford Centre and Lakeside shopping malls said the duo and “time is running out of time to strike a deal with lenders, sources said last night.” Incredibly Intu are £4.5bn in debt. The MOS said: “Intu is at a 'critical phase' in negotiations with lenders ahead of a deadline on June 26 that could freeze interest and debt repayments, one property source said. Another described the situation as 'precarious' and said an insolvency process could be triggered before that date if no progress is made in the coming days.” ICSM Credit understands that KPMG administrators have been put on standby in case Intu go under.
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