CEAF Close European

 

TIDMCEAF 
 
RNS Number : 2217X 
Close European Accelerated Fund Ltd 
01 December 2010 
 

Close European Accelerated Fund Limited (the "Company") 
 
Update on the Company's Holdings 
 
The Company wishes to update Shareholders on the status of certain issuers of 
Debt Securities held by the Company.  As Shareholders are aware, in order to 
fulfil its investment objective, the Company holds seven Debt Securities, 
including one issued by Kaupthing Bank hf.  This Debt Security has a nominal 
value of GBP6,000,000 and accounts for approximately 15 per cent of the total 
nominal value of the Company's Debt Securities. 
 
In the event of a default by an issuer of a Debt Security purchased by the 
Company, the Company will rank as an unsecured creditor in respect of sums due 
from the issuer of that Debt Security.  In such event, the Company may (in 
respect of that Debt Security) receive a lesser amount of money than the amount 
due pursuant to the terms of the Debt Security, may actually receive the money 
at a different time than would otherwise have been the case and/or the amount 
received may be zero.  Any losses will be borne by the Company and returns to 
Shareholders would be significantly adversely affected. 
 
As a result of Kaupthing Bank hf's reported failure to make payments due on 
other outstanding debt obligations, the Board of the Company considers it likely 
that it may not pay in full on its obligations pursuant to the Debt Security. 
Whilst recovery rates from issuers that default vary, and in this case are 
currently unknown, the worst case scenario would see the Company receive nothing 
from Kaupthing at the maturity of the Debt Security. 
 
The Company submitted a claim to Kaupthing Bank hf. for GBP10,050,000 in respect 
of the Debt Security, such amount being equal to the maximum Final Capital 
Entitlement of GBP1.675 per GBP1 nominal.  The Winding-Up Committee of Kaupthing 
Bank hf. has written to the Company to advise that it accepts GBP6,000,000 of 
the claim, being the nominal value of the Debt Security.  Separately, the 
Company has received notification from the Winding-Up Board of Glitnir Banki hf. 
that it has postponed a decision on the Company's claim until 14 April 2011. 
 
Shareholders should be aware that it is likely that Kaupthing Bank hf may not 
pay the Company the full GBP6,000,000 or, indeed, anything at all.  Any claims 
which are paid may be paid before or after the end of the life of the Company 
and in the case of early payment it may not be possible to reinvest the proceeds 
in Debt securities which replicate the investment characteristics of the 
original Debt Security.  Any claims which are paid may be paid in currencies 
other than Sterling and/or in forms other than cash.  Any payments received by 
the Company may therefore be subject to currency fluctuations and/or other 
market movements. 
 
For further information contact: 
 
1 December 2010 
 
Anson Fund Managers Limited 
Secretary 
 
Tel: 01481 722260 
 
E&OE - In transmission 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 STRUAOBRRKAURAA 
 

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