10:23 AM EDT, 06/26/2024 (MT Newswires) -- Slate Office REIT (SOT-UN.TO) has defaulted on $158-million worth of debt, complicating management's restructuring plan that involved selling off properties to generate cash for debt repayment, The Globe and Mail is reporting Wednesday.

To deal with its $1.175-billion debt load, including mortgages, the company announced plans last year to sell 40% of its assets, the report noted.

And it noted that although Slate owned office properties in Canada and the United States, it derived the bulk of its operating income from the Greater Toronto Area and Atlantic Canada.

Rental demand for its properties has not returned to prepandemic levels, and interest rates remain elevated in order to combat inflation, the report added.

(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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