11th Mar 2016 17:10
LONDON (Alliance News) - Global Resources Investment Trust PLC late Friday said it has been unable to reach a deal with the holders of GBP5.0 million worth of loan notes and plans to sell some of its assets to repay them.
Global Resources issued the unsecured loan notes to Primestar Energy FZE and LIM Asia Multi-Strategy Fund Inc back in February 2014, and gave an undertaking that the coverage ratio, which is the value of its investment portfolio to the principal amount of the outstanding loan notes, no less than 4:1.
However, Global Resources breached that undertaking earlier this week, and said Friday it is "unable to restore" the required coverage ratio. Therefore, it will sell some assets in order to repay the loan notes and de-leverage the company.
GRIT shares closed down 28% to 2.60 pence per share on Friday.
By Joshua Warner; [email protected]; @JoshAlliance
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