Macquarie Fortress Investments Limited has issued another assurance that the holders of its Fortress Notes will not be required to fund any debt shortfall.
The assurance came at the same time as the company advised the Australian Securities Exchange that the net asset value of the notes at December 31 was zero cents per note.
The company said that, as previously disclosed, the deterioration in global financial markets had continued to affect the traded prices of US senior secured loans in the Fortress portfolio.
It said presently, the cumulative market value of senior loans in the Fortress portfolio were below the total debt facility balance.
“Despite the above, even in the event that there is ultimately a shortfall between the total debt facility balance and the cumulative realised value of senior loans in the Fortress portfolio, holders of Macquarie Fortress notes will not be required to fund this shortfall,” the Macquarie offshoot said.
The company said the final return to investors continued to depend on default and recovery rates of senior loans in the Fortress Portfolio and that there had been no new defaults in the Fortress portfolio since December 31.
