10th Feb 2020 15:27
(Alliance News) - Hadrian's Wall Secured Investments Ltd on Monday said it intends to seek shareholder approval for the name change to HWSI Realisation Fund Ltd following the wind-down.
The stock was 5.2% lower in London in afternoon trade at 46.85 pence a share.
In December, the investment firm initiated a strategic review of the options available to it after deciding not to continue "in its current form". 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.
The review follows Hadrian's Wall expectations to make a "material" loss on its investment in Biomass Premium Fuels Ltd after it was unable to secure a joint venture partnership with an unnamed UK company.
Elsewhere, Hadrian's Wall said, since the end of June, one of its borrowers was in the process of undertaking an equity raise or company sale. This is progressing, and it is hoped that it will conclude in the first quarter of 2020.
This, the company said, should ensure full repayment of the loan at its face value of GBP13 million, plus accrued interest of GBP1 million, together with an early repayment fee such that it repays at more than face value.
Given the inherent uncertainty, Hadrian's Wall said it has increased a general loss reserve to GBP2 million from GBP1.3 million.
On Monday, the company said the general loss reserve has been further upped to GBP3.4 million.
As of Monday, Hadrian's Wall said its longest-dated loan in the portfolio matures in late 2023, whereas the weighted average life of the portfolio is 1.9 years.
Looking ahead, subject to shareholder approval for the managed wind-down, Hadrian's Wall said it intends to seek shareholder approval to change the name to HWSI Realisation Fund.
By Evelina Grecenko; [email protected]
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