Hot stock: LMIRT plunges 22.7% to all-time low of S$0.017

SHARES in Lippo Malls Indonesia Retail Trust (LMIRT) plunged 22.7 per cent, or S$0.005, to an all-time low of S$0.017 on Tuesday (Mar 21).

As much as 21 million shares were traded at the time, no married deals were recorded on the ShareInvestor data platform.

This comes after news that the trust would not be paying a distribution to holders of its S$140 million perpetual securities issued in September 2016.

The manager added that it has no obligation to pay the March 2023 distribution and that the unpaid sum is noncumulative and does not accrue in distribution. 

Unit holders of LMIRT, as well as those who bought its June 2017 perpetual securities worth S$120 million, are also at risk of not receiving any payments from the issuer.

Prior to the announcement, both Moody and Fitch downgraded their ratings for the issuer, citing its refinancing risk.

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