SINGAPORE (THE BUSINESS TIMES) – The manager of EC World real estate investment trust (Reit) said the refinancing exercise for all onshore and offshore term loans due in 2022 is in the final stages of negotiation, and believes the Reit can continue operating as a going concern.
The manager was responding to queries from the Singapore Exchange (SGX), which noted that EC World Reit’s auditors PwC had highlighted a material uncertainty in financial statements for the Reit’s financial year 2021 related to its ability to continue as a going concern.
In a bourse filing on Thursday (April 7), the manager said the uncertainty arose because the refinancing of loans, due for repayment in May and July 2022, were not completed at the time of the issuance of the financial statements.
The financials therefore reflected that the Reit’s current liabilities exceed its current assets.
The Reit’s management said it is confident that the refinancing exercise will be successfully completed prior to the maturity dates of the term loans.
It added, in response to queries from SGX, that the board deems it unnecessary to suspend the trading of the Reit’s units.
The counter closed flat at 73 cents on Thursday.
