Dasin Retail Trust receives letter of demand from bank over US$13.1m loan

DASIN Retail Trust has been served a letter of demand by its lender, Luso International Banking, related to a seven-month, US$13.12 million loan facility.

The trust was required to top up its reserve account with Luso Bank within five working days from the effective date of the facility, Dasin disclosed in a Thursday (Jan 19) bourse filing.

“The trust was unable to do so due to technical issues relating to the securing of approval from a China onshore lender/security agent for the remittance of funds from the trust’s onshore RMB account,” it said.

As a result, Luso Bank on Jan 10 issued a letter of demand to Dasin’s trustee-manager, declaring an event of default and demanding payment of the principal amount and interest.

The trustee-manager is seeking to engage Luso Bank in discussions involving the facility and is seeking legal advice on its obligations. It had previously appointed FTI Consulting as its adviser to conduct an independent business review of Dasin. The findings will be used as a basis to progress loan extension discussions.

Units of Dasin closed flat at S$0.245 on Thursday.