unencumbered assets, page-4

Asteroider

RNY has the $93.5 million in unencumbered assets with which to finance rollover of the $44 million revolving facility which is due in Sept 09. This facility is the only one with gearing related covenants.

There is $US247 million of debt to be refinanced in 2010, but security is limited to only a selection of RNY's properties. Since there are no ongoing leverage related loan covenants on this debt, the lenders will not be able to call the debt early for valuation declines.

There is $72 million loan maturing 2016. The assets mortgaged against this debt have a current value of $102 million. Again, i understand that there are no leverage covenants, so this lending is secure until 2016.

Even if RNY were to lose the assets associated with the 2010 refinance, there will be significant value in the currently unencumbered assets and the 2016-mortgage assets. This is what provides the value at the current price.

DYOR