(Alliance News) - HWSI Realisation Fund Ltd on Tuesday reported a drop in net assets over the six months to December 31, as the fund continues its wind down.
The fund - previously known as Hadrian's Wall Secured Investments - changed its name following shareholder approval of its wind down.
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.
At December 31, HWSI's NAV per share stood at 81.42 pence compared to 94.45p as at June 30.
The fund's net assets fell to GBP116.8 million from GBP137.1 million six months prior.
HWSI declared an interim dividend of 3.0p, unchanged on the year before.
The fund said: "The company will pursue its new investment objective by effecting an orderly realisation of its assets in a manner that seeks to achieve a balance between maximising the value received from those assets and making timely returns of capital to shareholders. This process might include sales of individual assets, mainly structured as loans and leases, or running off the portfolio in accordance with the existing terms of the assets, or a combination of both.
"As part of the realisation process, the company may also exchange existing debt instruments for equity securities where, in the opinion of the board, the company is unlikely to be able to otherwise realise such debt instruments or will only be able to realise them at a material discount to the outstanding principal balance of that debt instrument."
Shares in HWSI were 0.2% lower in London on Wednesday at 46.93p each.
By Paul McGowan; paulmcgowan@alliancenews.com
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