8th Oct 2015 07:21
LONDON (Alliance News) - Global Resources Investment Trust PLC on Thursday said it has breached an agreement governing the relationship between the value of its investment portfolio and the principal amount of its outstanding loan notes, meaning the holders of its loan notes could soon be in a position to require immediate repayment.
The trust said it has a 10 day "remedy period" in which to restore the ratio of the value of its investment portfolio to principal amount of the outstanding loan notes to 4:1. The ratio has fallen to 3:8. The company said that if it does not restore the ratio to the agreed four-times, the loan note holders will be able to act.
Global Resources Investment Trust said its directors are "carefully considering what action should be taken".
The company has GBP5.0 million nominal of 9% per annum convertible unsecured loan notes in issue.
The breach of the so-called coverage ratio agreement came as the trust said it net asset value - the difference between its assets and liabilities - fell to 45.40 pence per share on Thursday. Its NAV per share stood at 52.0p at the end of February, the middle of its financial year, down 22.6% from the end of August 2014, the trust hit by the slump in commodity prices.
By Samuel Agini; [email protected]; @samuelagini
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