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16 Jan 2009 07:00
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T2Β Income Fund LimitedΒ Press Release -Β 16Β January 2009
Trading Update
T2 Income Fund LimitedΒ (theΒ "Company") announced today theΒ following:
Β
1)Β theΒ recentΒ sale of its seniorΒ secured loansΒ ofΒ WTW Wissenschaftlich-TechnischeΒ WerkstΓ€tten GMBH,Β an indirectΒ subsidiary of Nova Analytics Corporation; and
2)Β thatΒ the Company'sΒ investment in the Income Notes of itsΒ subsidiary, T2 Income Fund CLO I LTD (the "CLO")Β generatedΒ net proceeds ofΒ approximately US$1.5Β millionΒ (GBP 1.1 million)Β for the three month period endingΒ 31 December 2008. Of this amount,Β theΒ Company received cash ofΒ approximatelyΒ US$699,000Β (GBP 481,000)Β from the CLO onΒ 15 JanuaryΒ 2009, whileΒ the remaining cash amount ofΒ approximatelyΒ $851,000Β (GBP 586,000)Β wasΒ diverted andΒ retained within the CLOΒ as a result of various tests that were not met as of the 2 January 2009 test date. The next test date isΒ 2Β April 2009. While we continue to monitor the situation closely, we currently have only limited visibility with respect to which of the CLO tests may or may not be met on that dateΒ or other future dates, andΒ whetherΒ anyΒ furtherΒ interest diversionsΒ may occurΒ and, if so, the magnitude of those diversions.
As described in previous press releases, the CLO indenture contains a variety of covenants, compliance with which could be made more difficult or impossible should credit markets continue to deteriorate.
As a result of the above, the Company hasΒ increasedΒ its consolidated cash position fromΒ approximatelyΒ GBP6.6Β million as ofΒ 30Β June 2008, toΒ approximatelyΒ GBP12.5Β million as ofΒ 15Β January 2009. Of that amount,Β GBP4.0Β million isΒ directly held by andΒ immediatelyΒ available to the Company, whileΒ GBP8.5Β million is restricted and retainedΒ withinΒ theΒ CLO.
The report summarising the results of the CLO tests as at 2 January 2009 test date can be found at the link below http://www.rns-pdf.londonstockexchange.com/rns/7376L_-2009-1-15.pdf
Contact:Β
Patrick ConroyT2 Income Fund Limited+1 203 983-5282
Philip Secrett
Nominated Adviser
Grant ThorntonΒ UKΒ LLP
+44 (0) 207 383 5100
END
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