The main security pledged under the HK$1.4 billion facility is CWTI’s 100% stake in CWT. In turn, CWT owns HK$1.2 billion of UK investment properties, US investment properties and China golf courses. These assets were valued at HK$24,604 million and net asset value was HK$5,300 million, as at Dec 31.
SINGAPORE (April 22): A trio of Singapore industrial real estate investment trusts (REITs) is feeling the fallout from CWT International’s default.
Last September, CWTI borrowed HK$1.4 billion ($241.4 million) from “certain lenders”, according to a company announcement. On April 16, CWTI failed to pay HK$63 million of accrued interests and certain fees to its lenders. Failure to pay constitutes a default and the lenders have asked for the full facility to be repaid. The lenders have further stated that if the outstanding amounts are not repaid by 9am on April 17, they will enforce the security and obtain possession of all charged assets with no further notice to the company and will appoint a receiver and manager over all of the charged assets.
