Nothing odd about the announcement. They invested the money on a CDO vehicle that funded the NHP purchase. They effectively provided a low tranche of mezzanine debt which is the first to go if the borrower defaults. The borrower will default as the instrument matures in January requiring a GBP1.5 billion refinance. Impossible given the nursing homes are now worth significantly less. Equity holder is Qatar government and they have already stated they won't tip in more cash.
REU Price at posting:
0.7¢ Sentiment: Hold Disclosure: Held
