NAB and Rubicon reach agreement
Allco’s Rubicon Asset Management Limited has gained some expensive breathing space with respect to its Rubicon Japan Trust, with the National Australia Bank confirming a $60 million revolving loan facility has been extended to April 30, next year.
However, some strict conditions have attached to the extension of the loan, including that the trust must undertake a program of asset sales over the year to reduce the outstanding amount of the facility and $10 million be repaid by September 30, this year.
The conditions also dictate that all net cash flow be held in an account under the bank’s control and be applied at NAB’s discretion to either reduce the facility or be held as cash collateral against the foreign exchange hedging contracts.
The announcement, made to the Australian Securities Exchange, also declares that there can be no distributions to unit holders, including the distribution declared for the period ending December 31, last year.
The announcement said NAB would be able to make margin calls under the foreign exchange hedging contracts, however, if the trust has insufficient cash funds available to meet any margin call obligations, this would not be an event of default or potential default under the loan facility.
AUTHOR
Mike Taylor
Recommended for you
ASIC has launched court proceeding against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
