Aberdeen High Income has announced plans to repay £10m of bank debt following the breaching of its b...
Aberdeen High Income has announced plans to repay £10m of bank debt following the breaching of its banking covenant on 13 March this year.
In its proposals to restructure the split, to be voted on at an EGM on 10 June, the board has said it wants to avoid an immediate realisation of the portfolio, allowing it to sell assets opportunistically. It also wants shareholders to approve an end to distributions without the consent of its bankers, until such time that all amounts to the bank have been repaid.
If approved, the proposals will prevent an immediate sale of the trust's assets, which, after a sale of its FTSE 350 holdings in March, are now dominated by holdings in other splits.
Over one year to 6 May 2002, the £95m trust, managed by Chris Fishwick, is ranked 51 out of 56 in the UK High Income sector, returning -93.9% on a mid-to-mid basis compared to the sector average -51.2%. Over three years, it is ranked 24 out of 28, returning -96.3% compared to the sector average -34.3%.
Each quarter, the board has further proposed that any cash balances in excess of £1m following the interest payments made on the bank loan will be used to repay the outstanding bank loan stock.
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