Dubai – Mubasher: A group of creditors has appointed financial adviser Rothschild and law firm Clifford Chance to oppose the terms of Emirates REIT's proposal to convert existing unsecured Sukuk worth $400 million into new secured instruments, sources told Reuters.
A group of bondholders, including local and international funds and regional banks and representing about 40% of the Sukuk holders, held a meeting on Sunday to hire advisers and prepare a counteroffer, three sources referred.
In the upcoming period, the bondholders will announce their concerns with the company, and a committee of creditors seeks to negotiate a better deal.
Emirates REIT’s business has been negatively impacted by the weak performance of Dubai's real estate sector, namely amid coronavirus (COVID-19); hence, the company plans to extend the existing bonds’ maturity to 2024 from 2022 and defer coupon payments for a year to improve its balance sheet.
The sources remarked that the bondholders may try to re-set the company’s management fees to enhance cash flows.
It is noteworthy to mention that the sharia-compliant real estate investment trust has recently launched a consent solicitation process to exchange existing unsecured Sukuk certificates with new secured Sukuk certificates.
