Dasin Retail Trust in default of loan facility totalling up to S$106.6 million 

DASIN Retail Trust has received a notice of default occurring under a Singapore dollar and Hong Kong dollar-denominated offshore syndicated term loan facility of up to S$106.6 million.

This loan facility was to finance the acquisition of Doumen Metro Mall, and was announced by the trust in September and October last year, the trust said in a filing to the bourse late Friday (Aug 11) evening.

The board of directors at Dasin Retail Trust said it had received a notice dated Aug 4 issued by the Singapore branch of the Bank of China – in its capacity as the facility agent of the offshore facility – declaring that events of default had occurred and are continuing under the facility. 

Based on the continuing events of default, the facility agent had declared that commitments were to be “immediately cancelled” upon the date of notice, and that the loans and the accrued interest as well as all other amounts accrued or outstanding under the finance documents are “immediately due and payable”.  

The facility agent had also said the loans are immediately payable on demand. 

Dasin Retail Trust said the notice stated that the total outstanding amounts stand at S$55.6 million and HK$297.6 million (S$51.5 million) as at Jul 25. These amounts, all additional interest and applicable default interest changes until payment is made, and indemnity obligations arising under the finance documents are immediately due and payable by the trustee-manager. 

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The trustee-manager is consulting with its advisers on its options with respect to the notice, and is also continuing to explore the available options in relation to the restructuring exercise with the lenders under the various facilities. 

The trustee-manager will make further announcements on the bourse in the event there are any material developments which warrant disclosure, the trust said. 

Shares of Dasin Retail Trust ended flat at S$0.094 on Friday.