23rd Oct 2015 15:19
LONDON (Alliance News) - Global Resources Investment Trust PLC Friday said it is currently breaching its coverage ratio undertaking related to its convertible loan notes, and that it has 10 days to remedy the situation or its loan note holders could call for the company to make a repayment.
Under the terms of its 9% convertible loan notes, the company gave an undertaking to ensure that the coverage ratio is at all times no less than 4:1. The coverage ratio is the value of its investment portfolio to principal amount of the outstanding loan notes.
Those loan notes, totalling USD4.75 million, were issued back in February 2014.
The company said its net asset value as of Friday was 35.60 pence per share, which has pushed its coverage ratio to 3.99, meaning it has breached that undertaking.
"The company has a ten day remedy period in which to restore the cover ratio to 4 times, failing which, the loan note holders would be able to require the immediate repayment of the loan notes," it said in a statement. "Further updates will be given in due course."
Global Resource shares were untraded at 7.0 pence on Friday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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