On 1st March 2023, Dasin Retail Trust ("DRT") has indirectly admitted that it is on the verge of financial collapse. It just could not release its full year financial results for FY2022 by March 2023 and has requested an extension from the Singapore Stock Exchange. The main stumbling block for accounting is that the DRT management does not know whether to release the financial statements on a going concern or non-going concern basis while pending further "extension negotitation" from all its bankers with regard to its debt restructuring plan by 30 April 2023. Yes, DRT has been asking for extension from its bankers again and again but to no avail...seems more like buying time before their eventual dismal. Luso International Banking Limited has already fired the first salvo of shots and issue their letter of demand to DRT for default of bank loan. Till now, we have not seen any concrete plan from its White Knights (a "reputable" Chinese Entity currently and not sure what happened to another rescue plan the year before) .
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| Extract of 1st March 2023 Announcement |
Parting thoughts
Will DRT survive its debt crisis? Will the White Knight rescue materalise besides empty talks and memorandum of understanding? Well, it seems to be a situation of high risk and high return for those seeking to exploit the current uncertainty and buying into DRT. As at 2 March 2023 (Thursday), unit price has dropped below S$0.200 per unit to S$0.195 per unit.
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