Difficulties in the split-capital trust sector continued last week, with one trust announcing a susp...
Difficulties in the split-capital trust sector continued last week, with one trust announcing a suspension in share dealings and a second a suspension in dividend payments.
Dealings in the shares of Quilter Global Enhanced Income were suspended after the trust became unable to service its bank debt.
The trust has assets of £26m, set against bank debts and other liabilities of £24m. In February, the directors of the trust announced they would seek to recapitalise the company. However, these plans were halted following a further fall in the value of its underlying assets.
Talks with the trust's creditors are ongoing, with the likelihood that the board will appoint receivers or seek to run-down its remaining assets in order to repay its bank debt. The Yeoman Investment Trust announced that following the continued fall in the value of its underlying assets, it is suspending future monthly dividend payments until further notice.
The board of Yeoman has put forward proposals to cancel the trust's share premium account and repurchase up to 100% of it's zero shares.
Both plans require shareholder approval, which will be sought at an EGM, planned to follow the AGM on 2 May.
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