Agreement with the Company's principal creditors
28 März 2003 - 5:38PM
UK Regulatory
Dartmoor Investment Trust PLC (the "Company")
Agreement with the Company's principal creditors
The Company announces that agreement has been reached between the Company's
principal creditors to allow the Company to continue to trade as a going
concern on the following basis:
The Company's existing bank lenders (the "Banks") have agreed to surrender the
entire outstanding amount of the 5.16% RPI-linked loan 2005 to the Company,
together with all accrued interest, in consideration of the payment by the
Company to the Banks of the sum of �374,684 plus associated legal expenses. In
connection with this arrangement, Exeter Asset Management Limited has agreed to
waive �75,000 of its investment management fees, thereby reducing the cost to
the Company.
The trustee of the 5.618% RPI-linked debenture stock 2016 (the "2016 Debenture
Stock"), on behalf of Prudential Annuities Limited (the "Prudential") as the
principal creditor of the Company, has agreed to the redemption by the Company
of the �534,818 nominal balance of the 6.25% RPI-linked debenture stock 2005
(the "2005 Debenture Stock"). A notice to the holders of the 2005 Debenture
Stock outlining the terms of the redemption, to be effective on 30 April 2003
by reference to a formula determined price under the terms of the 2005
Debenture Stock, is being despatched today. Interest accrued up to 30 April
2003 will be paid to those holders of 2005 Debenture Stock on the register on
31 March 2003 (not 4 April 2003, as previously announced) in accordance with
the terms of the 2005 Debenture Stock.
In connection with the arrangements referred to above, certain adjustments will
be made to the terms of the 2016 Debenture Stock, to include provision for an
additional payment on redemption of the 2016 Debenture Stock of �300,000
together with accrued interest to the date of payment.
Following completion of the proposals and with reference to the Company's
assets and liabilities as at 26 March 2003, the Company's total assets are
anticipated to be approximately �27.7 million, with portfolio investments
valued on a mid-price basis (as compared to approximately �26.0 million valued
on a bid-price basis) and the Company's liabilities are anticipated to be
approximately �29.6 million, taking into account the additional amounts which
would become payable on redemption of the 2016 Debenture Stock.
The Company continues to generate an excess of revenue receipts over ongoing
expenses. Under the terms of the agreement with the Prudential, all surplus
revenue receipts, together with any cash generated from realisations within the
Company's portfolio, will be utilised in reducing the outstanding balance of
the 2016 Debenture Stock. On this basis, the Prudential has confirmed its
support for the Company to continue to trade as a going concern.
It remains the case that a substantial recovery in the Company's assets will be
required before any value can be restored to the Company's shareholders.
Furthermore, it is unlikely the Company will be in a position to resume the
payment of dividends for the foreseeable future, if at all.
In the circumstances, the Board proposes to seek the cancellation of listing of
the Company's redeemable preference shares and ordinary shares. A circular
notifying shareholders of the proposed cancellation of listing will be
despatched as soon as practicable.
Enquiries:
Chris Giles/ Chris Whittingslow Tel: 01392 253225
Exeter Asset Management Limited
END