LIPPO Malls Indonesia Retail Trust (LMIRT) will not pay distribution on its S$140 million tranche of 7 per cent perpetual securities on Mar 27, the manager for the trust said in a regulatory filing on Wednesday (Mar 13).
LMIRT Management said Perpetual (Asia), in its capacity as trustee for LMIRT, has decided against paying distribution on the perpetual securities issued in September 2016.
“Accordingly, the issuer has no obligation to pay the March 2024 distribution, and the unpaid March 2024 distribution is non-cumulative and does not accrue distribution,” the filing said.
Consequently, it is not allowed to declare or pay any dividends, distributions or make any other payment on LMIRT units or (except on a pro rata basis) the S$120 million perpetual securities it issued in June 2017.
LMIRT cannot redeem, reduce or buy back any of the units or (except on a pro rata basis) any of the 2017 perpetual securities.
It can only make dividend, distribution or other payment on its units or the 2017 perpetual securities or redeem that issuance if it has satisfied some requirements, including having redeemed all the outstanding perpetual securities.
LMIRT units were unchanged at S$0.013 – its 52-week low – on Wednesday, before the non-payment of distribution on the 2016 perpetual securities was announced.
