JR Global REIT proposes bond repayment plan through June 2030

  • JR Global REIT proposed a bond repayment plan through June 2030 while freezing dividends and JR AMC fees.
  • The REIT would repay 40% of principal by 2027, 60% cumulatively by June 2029 and 100% by June 2030.
  • The plan prioritizes debt repayment over rushed overseas property sales and still requires creditor, bondholder and court approvals.

JR Global REIT, facing a liquidity crisis, has proposed repaying bond principal and agreed interest by June 2030, 18 months earlier than its original schedule. The company would repay 40% of principal by the end of 2027, 60% cumulatively by the end of June 2029 and the full amount by the end of June 2030. Agreed interest would be paid quarterly from June 30, 2027, although the REIT is seeking a full exemption for delayed interest. Based on a Samil PwC due diligence report prepared for the rehabilitation court, the plan requires proceeds from the Manhattan Building sale, Finance Star Tower refinancing or paid-in capital increases to be used first for early debt repayment. It covers financial institution bonds, publicly offered bonds and dividend bonds, while excluding trade credits needed for normal operations. JR AMC will forgo management fees, and dividends will remain restricted, until target bond principal and interest are fully repaid and normal distributions resume. The plan still requires creditor, bondholder, shareholder, board and court approvals.

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