The negotiation period for JR Global REIT's autonomous restructuring program (ARS) has been extended by one more month. The company aims to confirm a ruling by a U.K. court over the appraisal of its core asset, the Belgium Finance Tower, before discussing normalization plans with creditors.
JR Global REIT said on the 14th that the Seoul Bankruptcy Court approved a plan to extend the ARS negotiation period until the 14th of next month. This is the third extension.
Under ARS, courts defer a decision on whether to commence rehabilitation proceedings so that corporations can autonomously negotiate with creditors on normalization plans, including debt repayment. If talks proceed smoothly, the company can withdraw its application to commence rehabilitation and return to normal operations.
Since starting ARS on May 5, JR Global REIT has held creditor briefings and negotiated financial normalization plans. However, as a lawsuit in a U.K. court over the appraisal of the Belgium Finance Tower has been underway, additional time for negotiations became necessary.
The lawsuit filed by a local entity in Belgium has been proceeding in the Commercial Court of the High Court of Justice in the U.K. since April. Oral arguments concluded on the 13th (local time), and a ruling is pending.
A JR Global REIT official said, "Since May, when ARS began, negotiations for graduation from ARS, including creditor briefings, have proceeded closely," adding, "However, as a U.K. court case related to the appraisal of the core asset, the Belgium Finance Tower, is underway, additional time for negotiations is needed."
JR Global REIT plans to flesh out normalization plans with creditors based on the outcome of the U.K. court ruling.