Dissenting Unitholders Seek to Replace Dasin’s Trustee-Manager and Adviser
The trustee-manager of Dasin Retail Trust has received a requisition notice from a group of dissenting unitholders, as they sought to not only internalise Dasin’s trustee-manager function, but also to replace its current adviser, FTI Consulting (Singapore).
Request for EGM
Specifically, they have called for another extraordinary general meeting (EGM) to remove the current trustee-manager and replace it with the intended internal trustee-manager Banda Capital, which was established by the requisitioners through an independent trustee on Jan 5, 2024.
Removal of FTI Consulting
The requisitioners, who say they own more than 10 per cent of voting rights of all Dasin unitholders, are also seeking to remove FTI with immediate effect such that a new adviser may be appointed by the internal trustee-manager.
Alternative Proposal
Should the resolution to internalise the trustee-manager fall through, they propose that a committee of unitholders owning over 50 per cent of Dasin’s units would be responsible for selecting and nominating a new adviser.
Background
In a Dec 27 letter disclosed on Monday (Dec 30), the requisitioners noted that more than 19 months have passed since FTI was appointed to assist with the restructuring of Dasin’s financial obligations.
“The requisitionists are of the view that the unitholders have run out of patience with (Dasin’s trustee-manager). Almost two years have passed since FTI was first appointed and disappointingly, the fact remains that no progress has been made in relation to Dasin Retail Trust’s restructuring efforts,” they said.
Requisitioners’ View
These unitholders further said that a change in Dasin’s trustee-manager and adviser would “revitalise” the trust’s restructuring talks with its creditors.
“Enough time has been granted to FTI. It is now time for a change. We believe a new adviser should step in to bring fresh expertise and momentum to the restructuring negotiations,” stated the unitholders in their latest requisition letter.
Response from Dasin’s Trustee-Manager
Dasin’s trustee-manager said it will verify the holdings of the units of the latest group of requisitioning unitholders. It also intends to seek legal advice relating to the Dec 27 requisition notice.
Conclusion
The dissenting unitholders are seeking to replace Dasin’s trustee-manager and adviser in an effort to revitalize the trust’s restructuring talks with its creditors. The move is seen as a potential game-changer for the trust, which has been struggling to make progress on its financial obligations.
Frequently Asked Questions
Q: Who are the dissenting unitholders?
A: The dissenting unitholders are a group of unitholders who own more than 10 per cent of voting rights of all Dasin unitholders.
Q: What are they seeking to achieve?
A: They are seeking to internalise Dasin’s trustee-manager function and replace its current adviser, FTI Consulting (Singapore), with a new internal trustee-manager, Banda Capital.
Q: Why do they want to replace FTI Consulting?
A: They believe that FTI has not made sufficient progress on Dasin’s restructuring efforts and that a new adviser is needed to bring fresh expertise and momentum to the negotiations.
Q: What is the current status of the trust’s restructuring efforts?
A: Dasin’s trust has been struggling to make progress on its financial obligations, and the dissenting unitholders believe that a change in the trustee-manager and adviser is needed to revitalize the trust’s restructuring talks with its creditors.
Q: How will the trustee-manager respond to the requisition notice?
A: Dasin’s trustee-manager has said that it will verify the holdings of the units of the latest group of requisitioning unitholders and seek legal advice relating to the Dec 27 requisition notice.
