So, what will happen to unitholders of EC World Reit?

Consider the investment as complete loss, and there is no way to recoup the investment?

The Manager wishes to update unitholders of EC World REIT (“Unitholders”) that the Offshore Facility Agent has agreed to the request, and accordingly, approximately
S$3.4 million of the Offshore Interest Reserve has been released and used to fully repay the ECW Group’s interest expenses due on 31 August 2023 pursuant to the Offshore Facilities.

Pursuant to the terms of the Offshore Facilities, the Offshore Interest Reserve must be topped up by the ECW Group within five business days of its release. The breach of this requirement
would, if not remedied within the agreed cure period*, result in an event of default pursuant to the Offshore Facilities and also triggers a cross-default under the Onshore Facilities.

The relevant lenders may, amongst others, accelerate the Facilities if an event of default is continuing.

In the Notices, Bank of China Limited, Zhongshan Branch had declared, amongst other things, that (capitalised terms below are as defined in the Onshore Facility Agreement dated 3 January 2017 unless otherwise defined herein):

(a) The Onshore Facility 1 had matured on 31 December 2022;

(b) The outstanding sum of RMB355,194,918.29 as at 31 August 2023 under the Onshore Facility 1 plus interest which shall continue to accrue until full repayment is made, are
due and payable by Zhongshan Yuanxin;

© An Event of Default had occurred under Onshore Facility 1; and

(d) On the instructions of all the Lenders, the Onshore Obligors are to urge Zhongshan Yuanxin to repay the outstanding sums due under the Onshore Facility 1 within 5 days of receipt of the Notices. At the same time, Bank of China Limited, Zhongshan Branch may take steps in its capacity as Facility Agent and Security Agent of Onshore Facility 1 to enforce the Securities provided by the Onshore Facility 1 Subsidiaries under the Security Documents.

As stated in the announcements dated 11 and 14 August 2023, the Trustee-Manager is continuing to explore the available options in relation to the restructuring exercise with the Lenders under the various facilities.

Another Dead man walking company.
That's 2 in Chinese based Reits now.

FCT to divest Changi City Point to pare down debt level.

https://links.sgx.com/1.0.0/corporate-annou...f8efaa490b2d8e4

...

the Manager wishes to inform Unitholders that, pursuant to the terms of Offshore Facilities, as the units of EC World REIT (“Units”) have been suspended from trading for more than five (5) consecutive Trading Days  (or such longer period as may be agreed by all the lenders under the Offshore Facilities) for any reason whatsoever, the majority lenders under the Offshore Facilities have the right to instruct the facility agent under the Offshore Facilities to cancel the total commitments under the Offshore Facilities and declare all loans under the Offshore Facilities, together with accrued interest, and all other amounts accrued under the finance documents in connection with the Offshore Facilities immediately due and payable, whereupon the total commitments under the Offshore Facilities will be cancelled and all such outstanding amounts will become immediately due and payable without fee or premium.

As at the date of this announcement, the Manager has not received any indication from the relevant lenders that they intend to accelerate the Facilities or require any mandatory prepayment to be made as a result of the suspension of trading in the Units.

...

In a bourse filing, the trustee-manager also announced that Mr Zhang has entered into a non-binding memorandum of understanding to pursue a strategic partnership with Sino-Ocean Capital Holding, a real estate fund management company.

According to Mr Zhang, the partnership will involve an acquisition of Sino-Ocean Capital, its affiliate Glory Class Ventures or any affiliate designated by Sino-Ocean Capital of 70 per cent of the total issued share capital in the trustee-manager from Mr Zhang.

Sino-Ocean Capital may also acquire no less than 25 per cent of the total issued units in the trust, including units currently held by Glory Class, from Aqua Wealth.

EC World Asset Management Pte. Ltd. wishes to update unitholders of EC World REIT that approximately RMB 11,327,852.03 of the onshore interest reserve maintained under the onshore facilities of EC World REIT and its subsidiaries has been released and used to fully repay the ECW Group’s onshore interest expenses due on 20 September 2023 pursuant to the Onshore Facilities. The release of the Onshore Interest Reserve has been approved by the majority lenders under the Onshore Facilities at the request of the Manager.

As the Onshore Facilities do not specify the deadline by which the Onshore Interest Reserve must be topped up, this timing is currently subject to ongoing discussions between the onshore lenders under the Onshore Facilities and the ECW Group.

The Manager believes that FCT’s unitholding in Hektar REIT is non-core to its portfolio and investment strategy. The Divestment enables FCT to recycle the net proceeds to be deployed for capital management, working capital and/or investments that are consistent with its core suburban retail strategy.