FSL Trust

FSL Trust: The trust has released a clarification pertaining to its 2nd extension sought on two of its loan covenants, which was granted on 10 Jun. In the clarification, FSL noted that the final agreement on this extension has not been signed, and at this current point in time the trust does not fulfill the minimum debt service ratio and value-to-loan ratio depicted out under its loan agreement with its lenders. Furthermore, two executive directors, one independent director, together with the chairman of the trust has ceased their appointments. The trust has now requested for a trading suspension, and will seek additional time to complete the loan covenant. Some info on the conditions under the 1st extension (and 2nd extension): FSL Trust secured a 12-month extension on two of its loan covenants in Jun 2012. The value-to-loan ratio will reduced from 125% to 100% while the debt service coverage ratio will be relaxed from 1.1:1 to 1:1. In addition, the trust will incur an additional 2% interest on the shortfall amount. The trust is restricted from paying distributions to unitholders during the 12-month extension period.