JR Global REIT, a publicly listed overseas real estate REIT, failed to overcome a liquidity crisis and filed for court receivership.
According to legal sources on the 28th, the Seoul Bankruptcy Court issued a comprehensive stay order on JR Global REIT the previous day.
A comprehensive stay order is a measure to protect a corporations asset before the commencement of rehabilitation proceedings by preventing the disposal of property or repayment of debt without court approval and prohibiting creditors from provisional seizure or injunctions. This followed JR Global REIT submitting a petition for commencement of rehabilitation proceedings to the court on the same day.
JR Global REIT is a REIT that has operated key overseas properties, including the Finance Tower in Belgium and a building in Manhattan, New York. It reportedly applied for receivership after failing to repay 40 billion won in principal that recently came due.
JR Global REIT said it also applied to proceed concurrently with the Autonomous Restructuring Support (ARS) program. ARS is a system that holds off on commencing rehabilitation for up to three months and has the applicant withdraw the filing if the creditor and the debtor reach an agreement.
JR Global REIT said it plans to pursue various measures to strengthen financial stability, including capital expansion, local refinancing, and asset sales.
JR Global REIT is currently under a trading halt on the KOSPI market.