Hotel and bar investor the ING Real Estate Entertainment Fund (ASX:IEF) has rejected media reports that the company is in financial trouble, stating it has a “constructive and transparent” relationship with its creditors.
The company said it was in detailed discussions with its lenders regarding the refinancing of its debt facility, which is set to expire at the end of February.
But the fund did state that it may be forced may be forced to give its largest tenant, Icon Hospitality Management, a two-month rent deferral period.
Meanwhile, IEF tenant the Alchemy Group has entered voluntary administration. Alchemy owes the fund $340,000 in back rent, but the Fund has a bank guarantee that exceeds the arrears amount, IEF said.
IEF shares have today fallen 6.8% to $0.20.