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  1. #1
    Ignorant. Just ignorant.
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    Default 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 ?

  2. #2
    Senior Member
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    Default

    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.
    Do not consider my postings as investment advice. I am here to share research and to speculate on what might be. The boundary between fact and conjecture might not always be clear - best to treat all comments as speculation.

  3. #3
    Member Alan3285's Avatar
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    Jul 2009
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    493

    Default

    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.
    Last edited by Alan3285; 17-04-2010 at 11:10 AM.

  4. #4
    Member
    Join Date
    Aug 2010
    Posts
    380

    Default Any news on the residual distribution of about 1 cent/share

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

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