The fund said it canceled an offer to holders of its $400 million sukuk to replace their banknotes with a new instrument, after failing to obtain a majority approval of the offer to replace the sukuk, according to a press release.
The aforementioned Sukukholders reiterated their commitment to start open and transparent discussions with the Company, as presented to Equitativa on Wednesday, May 26, to negotiate in good faith and eventually offer improved terms..
The fund, listed on Nasdaq Dubai, is suffering from a financial crisis, successive losses, and escalating disputes with a number of sukuk holders and shareholders..
The group of sukuk holders “Equitativa” stated that in light of the company’s poor liquidity, it is encouraged to respond to its request to hold a meeting to start discussions leading to achieving a consensual deal in the interest of “Emirates REIT”, the sukuk holders and shareholders.
She added that reaching a restructuring agreement could provide the company with sufficient flexibility to improve its level of governance and make a tangible transformation, as well as provide adequate protection for sukuk holders from the increasing downside risks they bear..
و .علن Emirates REIT Fund May 23, announces the start of procedures for seeking approval to replace unsecured Sukuk certificates with new secured Sukuk certificates.
He explained that the new sukuks will be secured by a large part of the fund’s assets, as the fund believes that this step will benefit the sukuk holders who will benefit from the transition from the currently unsecured sukuks to new secured sukuks.