Update on Company's Holdings
December 07 2010 - 12:03PM
UK Regulatory
TIDMCEAF
RNS Number : 5452X
Close European Accelerated Fund Ltd
07 December 2010
Close European Accelerated Fund Limited (the "Company")
Update on the Company's Holdings
The Company has received a revised notification from the Winding-Up Committee of
Kaupthing Bank hf in which it advises the Company of inaccuracies concerning its
previous calculation. As a result, the Winding-Up Committee now recognises ISK
1,125,075,218 of the claim, being equal to approximately GBP6.3 million based on
exchange rates as at close of business 6 December 2010. A revised version of
the RNS announcement released on 1 December 2010 at 17.40 under RNS no 2217X17
is included below:
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 Bank hf 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 ISK 1,125,075,218
of the claim, being equal to approximately GBP6.3 million based on exchange
rates as at close of business 6 December 2010. 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 ISK 1,125,075,218 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:
7 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
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