APR Apr Energy

RNS Number:7705L
Aberdeen Preferred Income Trust PLC
17 October 2001



ABERDEEN PREFERRED INCOME TRUST PLC



The board of Aberdeen Preferred Income Trust PLC (the "Company") announces
that it intends to write to shareholders as soon as practicable, detailing
proposals to resolve the balance sheet issues described below by the raising
of new funds and by a capital reorganisation. The Company has also started
discussions with another investment trust, which could lead to an acquisition
of that trust's assets. It is therefore anticipated that the board's proposals
will involve a fund raising which is being satisfactorily progressed, the
corporate transaction referred to above and a capital reorganisation.

The proposals are being designed to be of benefit to existing zero and
ordinary shareholders. The most important effects of the proposals would be to
reduce the Company's gearing, to distance the Company from future breaches of
its banking covenants, and to improve the cover of the zeros and the net asset
value of the ordinary shares.

The Company has secured the support of its bankers for these proposals, which
stem from the extreme weakness of the income share market over most of the
last year. This has resulted in the total qualifying assets of the Company
falling below the level required by the covenants in its loan agreement. As at
15 October 2001 the ratio of total qualifying assets to bank indebtedness was
187.70 per cent. against a minimum permissible level of 200 per cent. It has
now been agreed that cash balances which are charged in favour of the banks
may be deducted when calculating qualifying assets and bank indebtedness. This
should give the Company the flexibility to ensure that the 200 per cent. level
is not breached by managing its liquidity.

The fall in the value of the Company's total assets has also resulted in a
situation in which the Company can no longer satisfy the net assets test in
section 264(1) of the Companies Act 1985. Consequently the board announces the
suspension of payment of the monthly dividends on the ordinary shares,
commencing with the dividend declared on 20 September 2001 for payment on 25
October 2001. It is emphasised that the suspension of dividend payments arises
solely from the technical requirement of section 264 and not from a shortfall
in either revenue reserves or cash. The board intends, subject to approval and
implementation of the proposals referred to above, to pay the cumulative
amount of the suspended dividends as soon as practicable thereafter. The board
is in any event contemplating a return to its previous practice of paying
dividends on a quarterly instead of a monthly basis.

As a further consequence of the falls in market values, the value of the
Company's net assets has fallen to less than half of its called up ordinary
share capital. An extraordinary general meeting of the company will
accordingly be convened in compliance with section 142 of the Companies Act
1985.



Enquiries:


        Chris Fishwick, Aberdeen Asset Managers     020 7463 6000

        David Thomas, Brewin Dolphin Securities     020 7246 1115

Apr Energy (LSE:APR)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024

Apr Energy (LSE:APR)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024