Lippo Malls Facing Debt Issues, Suspends Distribution to Perpetuals

News about Lippo Malls Indonesia Retail Trust

Lippo Malls Indonesia Trust's debt has recently been downgraded by Moody's to Caa1 and by Fitch to CCC+. The trust gearing level of 44.6% is now close to the regulatory limit of 45%, and it will need to refinance the majority of its debt in the next 16 months. A depreciating Indonesian Rupiah is also adding to the woes as the trust has debt in both US and Singapore Dollars.

Hot on its 2022 results, the trust has thus announced the suspension of payment to perpetual securities holders:

LMIR Trust also intends to cease distributions for the $140.0 million and $120.0 million perpetual securities.

As those bonds have a "dividend stopper" clause, this would also prevent the trust from paying distribution to shareholders until payments to perpetual holders resume.

The trust has announced the appointment of Stirling Coleman Capital Limited as financial advisor in a capital management initiative, which aim to improve its balance sheet and financing situation:

As mentioned in the Announcement, the Manager is exploring options and measures to maintain a sustainable capital structure and reduce the aggregate leverage of LMIR Trust.

Lippo Malls Indonesia Retail Trust
Price0.012 SGD
NAV0.062 SGD
Yield (4 quarters)0.00%
Gearing43.7%