EC World Reit releases more funds from escrow for loan repayments
MORE funds deposited by its sponsor for loan repayment have been released from escrow to help pay for some of the Reit’s outstanding mandatory repayments, EC World Real Estate Investment Trust’s (Reit) manager said on Tuesday (Mar 7).
Around S$5.7 million and US$1.9 million were used to partially repay existing offshore bank loans on Mar 2, while 29.3 million yuan (S$5.7 million) was used to repay existing onshore bank loans partially on Mar 7, the manager said.
The outstanding amount of relevant deposits stands at 29.9 million yuan, which the onshore facility agent continues to hold in escrow. The deposits held in escrow with the offshore facility agent have been fully utilised.
As at Mar 7, the Reit has some S$57.7 million in offshore bank loans and S$81.2 million in onshore bank loans to repay.
Using a portion of the deposits would enable the Reit to save on interest payments which would otherwise be incurred on the outstanding loan amounts, said the manager.
It also noted there is no certainty or assurance that the lenders will consent to the extension of the mandatory repayment deadline beyond Feb 28.
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Until this consent is obtained, EC World Reit is in breach of its mandatory repayment obligations, which triggers an event of default under the existing offshore and onshore bank loans.
To date, around 50 per cent of existing onshore bank loan lenders and 75 per cent of lenders of existing offshore bank loans have agreed to the Reit’s new repayment plan. The manager said it will provide an update if all lenders have given their approval, or if any lender has rejected the new repayment plan.
Previously, the manager released about 198.9 million yuan from escrow to partially repay the outstanding mandatory repayment of its offshore and onshore bank loans.
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EC World Reit units closed S$0.01 or 3 per cent higher at S$0.34 on Tuesday.
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