Global Resources Investment Trust has announced that a fall in its net asset value, to 34.58p per share, means that its total assets equate to 3.94x the value of its convertible. One of the covenants that GRIT has been obliged to abide by, since the convertibles were issued, is that the asset cover on the convertibles should not drop below 4x. In the event that the asset cover falls below 4x, the convertible holders have the right to ask for immediate repayment at par. However, under the terms of the convertible, GRIT has 10 days to rectify the situation and the Board are examining their options. The company says that further updates will be given in due course.
GRIT : Global Resources 9% convertible breaches covenant