Sign In
8 Jan 2009 14:50
ļ»æ
Close High Income Properties PLC (the "Company")
Trading Update
The Board ofĀ CloseĀ High Income Properties PLC advises that,Ā following receiptĀ of theĀ 31 December 2008Ā independent valuationĀ fromĀ DTZ Debenham TieĀ Leung,Ā which shows a fall in the value of the Ordinary and the "D"Ā OrdinaryĀ Share property portfolio values,Ā the Company may now be in breach of its loan to value (LTV) covenants with its lending banks. The followingĀ table summarises the current position:
Ā
|
Ordinary Shares |
Current LTV |
LTVĀ CovenantĀ Level |
Lender |
|
CHIP (One) Ltd |
67.7% |
60% |
Bank ofĀ Scotland |
|
CHIP (Two) Ltd |
66.2% |
60%Ā |
Nationwide Building Society |
|
CHIP (Three) Ltd |
67.0% |
60% |
Bank ofĀ Scotland |
|
CHIP (Four) Ltd |
65.1% |
60% |
Bank ofĀ Scotland |
|
CHIP (Five) Ltd |
66.5% |
60% |
Bank ofĀ Scotland |
|
"D"Ā OrdinaryĀ Shares |
|||
|
CHIP (Six) Ltd |
79.6% |
65% |
Nationwide Building Society |
The Property Investment Advisor, Close Investments Limited, is continuingĀ inĀ its discussions with the Company's lending banks to review the financial covenants currently in placeĀ with the aim of providing the Company with greaterĀ financialĀ flexibility. The CompanyĀ intendsĀ appointing a specialistĀ debtĀ advisorĀ toĀ assistĀ it on these negotiations.
As a result in the fall in value of the Ordinary Share property portfolio, the Directors do not recommend a payment of a dividend to Ordinary Shareholders at this time in order to preserve cash to sustain liquidity.
The Company continues to be able to fully service its lending commitments and is not in breach of any other covenants relating to its facilities. Further details of the property valuations will be given when the Company issues its monthly netĀ asset value (NAV) statement on or beforeĀ 15Ā January 2009.
For further information please contact:
Peter Roscrow
Close InvestmentsĀ Limited
020 7426 4174Ā
Follow the stocks
