First REIT Has ‘No Alternative Plan’ Yet If Proposed Restructing Plan Falls Through

January 11, 2021 – First REIT said they have no plan B if unitholders choose to disapprove the REIT’s restructuring and recapitalisation plan in their upcoming extraordinary general meeting (EGM).

“The Proposed PT Lippo Karawaci Tbk (LPKR) Master Lease Agreement (MLA) MLA Restructuring is the best plan that the Independent Committee and Management have negotiated with LPKR. There is no alternative plan at this stage,” First REIT said as a response to a unitholder query in a dialogue.

“Without Unitholders’ support for both resolutions, there is a real risk and high probability that LPKR may default on the current MLAs… Under these circumstances, First REIT will face an urgent need to re-evaluate alternative funding sources or face financial default,” it added.

Just before 2020 ended, First REIT announced its plans to restructure, recapitalise and reposition in the face of an upcoming credit due in March this year.

First REIT is expected to hold their EGM on January 19, 2021 for unitholders to vote for or against the proposal.

Read full unitholder Q&A dialogue here

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