11:46 AM EDT, 06/25/2024 (MT Newswires) -- Slate Office REIT (SOT-UN) was down 16% after it said Tuesday its lenders provided notices of default, restricting the company from making further payments of accrued interest on its outstanding debentures.

As a result, Slate said it does not expect to pay cash interest payments due June 30 on its 7.50% convertible unsecured subordinated debentures and 5.50% convertible unsecured subordinated debentures.

Slate also does not expect to pay the cash interest due Aug. 31 on its outstanding 9% convertible unsecured subordinated debentures.

Under the trust indentures governing the debentures, Slate said failing to pay the interest for 15 days after the due date will result to a default under the terms of the debentures.

Slate said it continues discussions with its senior lenders to determine a mutually acceptable path forward in respect of its obligations, including in respect of its revolving credit facility.

The REIT's units were last seen down $0.065 to $0.33 on the Toronto Stock Exchange, a 52-week low.

Price: 0.33, Change: -0.07, Percent Change: -16.46