17th Mar 2005 07:00
Britannic Global Income Secs PLC17 March 2005 Britannic Global Income Securities PLC (the "Company") Restoration of Listing of Zero Dividend Preference Shares On 5 July 2002, the Company's parent company, Britannic Global Income Trust PLC("Britannic Global") announced that it had breached its asset cover covenant.Further falls in the value of its investments caused Britannic Global's totalassets to fall to the extent that the bank loan from the Bank of Scotland wasonly covered by 1.11 times. Due to these significant falls in the value of theinvestments, on 25 July 2002 the Board announced the suspension of trading ofthe Ordinary Shares and Zero Dividend Preference Shares ("ZDP Shares") due toBritannic Global having been in severe financial difficulty. The Bank ofScotland agreed to waive the covenant breach subject to a six monthly review ofthe financial position of Britannic Global. The waiver was negotiated by theBoard to prevent the Company and Britannic Global from being placed intoreceivership and to take advantage of any improvement in market conditions goingforward. The net asset value of the ZDP Shares at the date of suspension was0.55p. The Board has now resolved that due to the significant improvement in thefinancial position of Britannic Global (as a result of the improved markedconditions since suspension) to seek approval from the UKLA to restore thelisting of the ZDP Shares. The net asset value of the ZDP Shares has increasedfrom 1.16p on 30 June 2004 to 9.65p on 31 December 2004. As at 28 February 2005the net asset value of the ZDP Shares had increased to 13.49p. Britannic Globalremains in breach of its asset cover covenant however the Bank of Scotland hasagain agreed to waive this covenant breach until the end of the life of theCompany on 30 November 2005. Due to the fact that the Ordinary Shares in Britannic Global have no economicvalue, the Board will not seek to restore the listing of the Ordinary Shares. Enquiries: Paul Richards 020 7523 8350 Collins Stewart Ltd This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
BTG