Last checked at 
20 Oct 2021 07:00
20 October 2021
Sequoia Economic Infrastructure Income Fund Limited
("SEQI" or the "Company")
Portfolio update
As recently noted in the Investment Update for 30 September 2021, Salt Lake Potash or SO4 (representing 1.9% of NAV as at 30 September 2021) was seeking further funding by means of an equity issue to address additional cost and ramp up requirements at their Lake Way potash project. The proposed equity raise has been unsuccessful and Salt Lake Potash have announced a Voluntary Administration of the company as at 20 October 2021.
The Investment Adviser had been developing a contingency plan should the funding gap not be addressed. This contingency plan has now been activated in full alignment with the lender group. The lender group has appointed KordaMentha, a leading Australian restructuring and advisory firm, as receivers for the lender group.
Please refer to KordaMentha's press release on their appointment as receivers here:
https://www2.asx.com.au/markets/trade-our-cash-market/announcements.so4
Under Australian restructuring processes, receivers act for the benefit of lenders and can take a variety of measures including trade sales of the company, debt sales or other restructuring activities to preserve lender value and maximise recovery. The Investment Adviser notes that the cost base of the project and equity invested to date materially exceeds the total debt quantum and that a similar potash project utilising evaporative production processes for sulphate of potash production has recently achieved first production, albeit with reportedly similar ramp-up issues as SO4. Whilst it is too early and speculative to comment on the eventual recovery percentage of our investment, our senior secured position should position us strongly in the restructuring process.
A further update will be provided as and when appropriate.
For further information please contact:
Sequoia Investment Management Company +44 (0)20 7079 0480
Steve Cook
Dolf Kohnhorst
Randall Sandstrom
Greg Taylor
Anurag Gupta
Jefferies International Limited +44 (0)20 7029 8000
Gaudi le Roux
Neil Winward
Tulchan Communications (Financial PR) +44 (0)20 7353 4200
Martin Pengelley
Elizabeth Snow
Deborah Roney
Praxis Fund Services Limited (Company Secretary) +44 (0) 1481 755530
Matt Falla
Katrina Rowe
About Sequoia Economic Infrastructure Income Fund Limited
The Company seeks to provide investors with regular, sustained, long-term distributions and capital appreciation from a diversified portfolio of senior and subordinated economic infrastructure debt investments. The Company is advised by Sequoia Investment Management Company Limited.
LEI: 2138006OW12FQHJ6PX91