Aseana Properties says lenders are holding up capital distributions
Aseana Properties has released an update on their progress towards making a first capital repayment to shareholders. The intention had been to make a first return of capital of US$10m to shareholders as of the end of September 2015 and to then make further returns of capital as cash was raised by the Company as a result of disposals of assets in the portfolio. This has not yet been possible.
The company says that the process of raising cash has been progressing steadily with a full sale of the Waterside Estates land previously announced for a consideration of US$9.29m with payment in full due to be received by the end of 2015 and partial sales of the stake in Nam Long Investment Corporation raising US$5.4m since June 2015. They say that progress on selling other assets is also well underway, although no further sales are yet at a stage that the Board feels able to announce the likely terms or timing. The Company’s cash balance as at 30 September 2015 was approximately US$25.0m and this figure is expected to grow further by the end of 2015. The unaudited Net Asset Value of the Company at 30 September 2015 was US$134.4m.
An application to make the first capital distribution was submitted to the Company’s lenders at the end of August but the company says that the consent from two lenders remains outstanding. The company says that there understanding is that market conditions in Malaysia caused by the recent political events in the country and the depreciation of the Malaysian Ringgit this year have caused concerns for a number of the Company’s lenders who have therefore become cautious about the Company returning capital to Shareholders. Aseana’s Board say that they believe that further discussions with the lenders and more portfolio realisations will help to resolve this situation. They do say however, that it is possible that capital repayments may not occur until there have been further realisations within the portfolio and the Company has paid down a portion of its project related debts. Further update will be provided in due course.
Aseana Properties says lenders are holding up capital distributions : ASPL