Update on Holdings (7446E)

TIDMCEAF

RNS Number : 7446E

Close European Accelerated Fund Ltd

12 April 2011

Close European Accelerated Fund Limited (the "Company")

Update on the Company's Holdings

12 April 2011

As Shareholders are aware, in order to fulfil its investment objective, the Company holds seven Debt Securities, including one issued by Glitnir Banki 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.

The Company submitted a claim to Glitnir Banki hf. for GBP10,050,000 in respect of the Debt Security, such amount being equal to the maximum redemption proceeds of GBP1.675 per GBP1 nominal. The Winding-Up Board of Glitnir Banki hf. has written to the Company to advise that it has postponed a decision on the Company's claim until a further creditors' meeting likely to be held on 31 August 2011.

Shareholders should be aware that it is likely that Glitnir Banki hf. may not pay the Company the full amount claimed or, indeed, anything at all. 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 Glitnir Banki hf. at the maturity of the Debt Security. The amount claimed should not be considered a forecast of the amount which will be due from Glitnir Banki hf. on the maturity of the Debt Security, nor is it a reflection of the net asset value per Share. The redemption proceeds per Share per the Company's investment objective will not be known until after the end of the life of the Company when the closing value of the Dow Jones Eurostoxx 50 Index on the End Date is known and may not be the amount claimed.

Any claim which is 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 a Debt Security which replicates 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:

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

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