EC World Reit able to operate as going concern: Reit manager
Tay Peck Gek
EC World Real Estate Investment Trust (Reit) is able to operate as a going concern, and trading of its units should not be suspended, its board said in response to queries from Singapore Exchange (SGX) .
In its response on Tuesday (Jan 3), the manager for the Reit, EC World Asset Management, reasoned that it is in the process of divesting some properties, and expects that existing bank loans will be repaid or refinanced before any default is called by the lenders. The operations of the ECW group continues to be “stable and profitable”, it added.
It noted that the proceeds of the proposed divestment will be sufficient to make the mandatory repayment, while about 83 per cent of the lenders have internally approved the repayment plan and the remaining lenders are in the process of obtaining approval.
The statement said EC World Asset Management has been advised that the remaining lenders have no internal directive to call for default at this juncture.
After its bank loans are cleared or refinanced by Apr 30, 2023, it is estimated that the EC World group will be in a net current assets position of S$141.8 million.
The board has also assessed that trading of units in EC World Reit should not be suspended as the China pure play with logistics assets is able to continue operating as a going concern as well as assess its financial position.
EC World Reit units closed flat at S$0.445 on Tuesday, before this response was published.
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