Half-yearly distributions to unitholders are to be halted till Dec 31, 2025. Lenders will waive all past and existing breaches in for the loans. Financial covenants will be relaxed till Dec 31, 2025. In the meantime, the manager with agreements with the lenders will dispose of the properties in tranche 1 by end-2025 for not lower than the minimum sum.
Proxy advisor Glass Lewis has advised institutional investors to vote FOR all three resolutions, which are interdependent, to be tabled on Dec 14 at Manulife US REIT's (MUST) EGM.
The EGM is to approve a recapitalisation plan to solve the breach of the financial covenant in the existing facilities. The plan was negotiated between the sponsor, manager and 12 lenders. The recapitalisation enables MUST to pay down US$285.0 million ($380.08 million) in debt and all loan maturities of the existing facilities would be extended by one year.
