A group of Emirates REIT creditors has rejected a proposal to exchange $400 million of sukuk for new notes maturing two years later, Asharq reported.
The certificate holders said in a statement today that they had informed the company of their position and requested a meeting the next day to “discuss the ad-hoc group’s concerns and requirements for the restructuring process.” Rothschild & Co. and Clifford Chance are advising the group.
Fitch Ratings has lowered the rating of the Dubai-listed REIT to C, one notch above default, from B+ after it proposed the swap.
Emirates REIT said in a statement that it had received positive feedback so far from the institutions holding the sukuk, and expects them to vote in favor of the offer.
Last week, Emirates REIT offered to swap $400 million in unsecured sukuk maturing in 2022 for secured sukuk maturing in 2024, to improve the balance sheet of the Islamic Real Estate Investment Fund, which was affected by the coronavirus pandemic last year.—Arab News