Following consultations with shareholders JPMorgan Senior Secured Loan’s Board announced last month that it would seek approval to place the Company into voluntary liquidation, affording all Shareholders the opportunity of a full cash exit at net asset value less costs.
In late March 2016 the Board will publish a circular which will provide notice of two extraordinary general meetings.
The first meeting will seek Shareholder approval to amend the Company’s Investment Policy, removing restrictions which require that no more than 20 per cent. of the portfolio’s assets be held in cash, and to amend the Articles of Incorporation of the Company allowing for compulsory redemption of shares. The amended Investment Policy will allow the Manager to divest the Company’s entire portfolio of bonds and senior loans, whilst realising maximum value for Shareholders. The Board expects that the divestment of the vast majority of the portfolio will take up to two months, following which the Company intends to return the bulk of the net proceeds to Shareholders by way of a compulsory redemption of shares. The Board is targeting June 2016 for the redemption to take place. Certain amounts will be retained by the Company to satisfy remaining creditors and all costs associated with the subsequent winding up of the Company.
The second meeting, which will occur following the compulsory redemption of shares, will seek Shareholder approval to place the Company into liquidation.
In contemplation of the winding up of the Company the Manager has retired 100 per cent of the gearing under the US$25 million revolving credit facility with Scotiabank Europe Plc. Effective from Friday 4 March 2016 the credit facility has been terminated.
JPSL : JPM Senior Secured Loan paves way for liquidation, removes credit facility