Rural Portfolio Capital (RPC010)

REL: 1718 HRS Rural Portfolio Capital Limited

GENERAL: RPC010: Financing of cash requirements

Rural Portfolio Capital Limited

Market Announcement - 15 April 2010

(Code RPC010)

Rural Portfolio Capital Limited announces that the financing of the cash
requirements for 15 April 2010 (as discussed in the half year report and the
market announcement on the 12 February 2010) are currently being finalised
within the Rural Portfolio Investments Limited group.

The six monthly dividend payments to RPS holders due 15 April 2010 will be
paid today from the Dividend Escrow Account.

Under the Security Trust Deed dated 22 February 2007, it is a requirement
that the Dividend Escrow Account shall at all times hold sufficient funds in
order to meet the next dividend payable. The Trustee has been advised that
this funding of the Dividend Escrow Account for the next six monthly payments
due on 15 October 2010 will not occur today. The Security Trust Deed allows
a 30 day period for such a breach to be remedied, prior to an enforcement
event occurring.

The RPI Group expects to complete arrangements to top up of the Dividend
Escrow Account within the remedy period. An extension of time has been
sought from the New Zealand financial institutions with existing borrowings
to the RPI Group, to allow all arrangements for those borrowings to be
concluded.

A further announcement on the completion of this process will be made as soon
as possible.

ENDS
End CA:00193790 For:RPC Type:GENERAL Time:2010-04-15:17:18:07



And what does the team think the chances are of an "enforcement event" occurring ?

And is it worth buying in at 100% in anticipation ? Or simply for the yield ?

The security for the redeemable preference shares consists of:

46,764,868 PGW shares
10,000,000 New Zealand Farming Systems Uruguay Limited shares

At current prices this is about $30million.

Redeemable face value is $60million.

They should have just paid about $3million, or so, out of the dividend escrow account.

They also have to find the cash to pay the final two biannual interest payments - say 10% = $6million, over the next year.

A return of about 40cents per unit is all that can be expected from known assets. The market price is higher than this and is hence factoring in some indefinable Norgate "magic" to close the asset gap.

If I was a senior lender to Rural Portfolio Investments - there would be no way I would suffer even a tiny dilution of my security to keep this show on the road. The dividend income has dried up from PGW - dilution of core investments has been quite significant. Only a true Norgate believer would be expecting this situation to end in any other state than .... badly.

Hi GTM,

Rather than starting a new thread for RPC010, can you merge this into the existing one?

Also, did you see this:

http://www.sharetrader.co.nz/showthr...l=1#post301264

Thanks,

Alan.

The receivers of Rural portfolio capital still owe preference share holders one cent per share. Does anyone know when this final payment would come?