Resolutions to reconstruct the Aberdeen Preferred Income Trust were approved at the company's EGM on...
Resolutions to reconstruct the Aberdeen Preferred Income Trust were approved at the company's EGM on 21 January, opening the way for the trust to deleverage.
In October 2001, the £240.1m trust suspended dividend payments when net assets fell below the aggregate of its share capital and undistributable reserves.
After a two-and-a-half hour meeting, shareholders approved the introduction of a new class of share in the trust ' the stepped preference share ' as well as new 2003, 2005 and 2008 zero preference shares.
The trust raised £62m of new money and is to repay £30m of bank debt, leaving it with estimated gross assets of £270m. It will also raise the cover of existing zeros.
The placing and open offer of up to 72.36 million stepped preference shares will now take place, with such shares ranking below existing zeros.
Stepped preference shares are virtually the same as income shares, the difference being that the dividend on them will increase by 5% each year until December 2007.
Our weekly heads-up for advisers
'Nothing can prevent scammers developing workarounds'
Stalwart Scottish Mortgage takes third place
Consistency and compliance vs. slower reaction time
Search for replacement to begin imminently