Global Resources Investment Trust has not been able to come to an agreement with Primestar Energy FZE and LIM Asia Multi-Strategy Fund Inc. relating inter alia to the subscription, open offer and early redemption of loan notes and the reduction of the required coverage ratio (4:1 assets to loan notes).
The assets of the fund are insufficient to meet the asset cover test on the convertibles and they say they are unable to restore the required coverage ratio. Therefore the manager is beginning the process of realising sufficient portfolio assets to repay the loan notes and de-leverage the company.
GRIT : Global Resources to pay back convertibles