9th Dec 2019 14:57
(Alliance News) - Hadrian's Wall Secured Investments Ltd on Monday said it is now undertaking a strategic review of the options available to it after deciding not to continue "in its current form".
The investment firm said the options include sales of individual investment assets, mainly structured as loans and leases, or running off the portfolio in accordance with the existing terms of the investments, or a combination of both.
"In coming to this decision, the board acknowledges that the challenges already facing the company in terms of its size, scalability, limited secondary market liquidity and the discount to net asset value at which the shares have been trading, are likely to be exacerbated by the recent news relating to Biomass Optimum Fuels Ltd and Biomass Premium Fuels Ltd," Hadrian's Wall said in its statement Monday.
Back in November, Hadrian's Wall had expected to make a "material" loss on its investment in Biomass Premium, as the company was unable to secure a joint venture partnership with an unnamed UK company.
The firm's investment in Biomass Premium and Biomass Optimum amounted to GBP10.7 million and GBP6.7 million, respectively.
On Monday, Hadrian's Wall said it has instructed its adviser not to make any further investments, but instead use the cash from ongoing loan repayments to repay amounts outstanding under its revolving credit facility. Thereafter, the company said it intends to use cash to make returns for shareholders.
Despite that, Hadrian's Wall said it will be paying 1.5 pence a share dividend for the quarter to the end of December, as expected.
In addition, the company said it is in the process of appointing Brett Miller as an additional director to replace Paul Craig, who has decided to step down.
Miller has considerable experience in corporate finance, corporate governance, corporate restructurings and optimising financial capital structures, the company said.
"The board thanks Paul for his commitment and significant contribution to the board and the company since its launch in 2016," Hadrian's Wall added.
The stock was trading 5.2% higher in London on Monday at 62.88p a share.
By Evelina Grecenko; [email protected]
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