This article is from the Australian Property Journal archive
BECTON is seeking a waiver of the defaults from its lender following Century Funds Management's bid to seize control of $900 million worth of assets.
Becton’s subsidiary Lachlan REIT, has received notice from the Commonwealth Bank, the lender to the Becton Office Fund No. 2 and Becton Diversified Direct Fund, that Century’s proposal has triggered events of default under those funds’ debt facility agreements with CBA.
As a result of the Century Notices, CBA may declare all money owing under the facilities immediately due and payable. CBA is considering its position and has reserved its rights.
Becton said it is in negotiations with CBA.
If investors approve the proposals in the Century Notices to remove Lachlan REIT as manager, this would, in the absence of CBA’s consent, constitute further events of default.
Becton said it is considering its position with respect to the events of default and the matters raised in the Century Notices and will update investors and the market in due course.
Australian Property Journal
