pif related news, page-27

No need to be too sad Seamisty, as there undoubtedly is a proportion of performing loans and other fund investments that are generating an income. The 2008 Annual Report lists:

Note 3: ( Page 14)
The contracted interest rates for mortgage loans range from 9.2% to 16.25% (2007: 8.55% to 16.25%). The contracted interest rates for asset backed investments range from 9.0% to 12.25% (2007: 6.0% to 13.0%)

The $ total of Interest Income received from -
Cash and deposits - domestic
Fixed interest securities -domestic
Interest - promissory notes
Mortgage loans
Asset backed investments was $61,633,000

There was also Interest income from related and unrelated investment schemes of $6,162,000 ( Note 4 Page 15)

We don't know how much was jettisoned to clear the loan or how many of the loans etc may have slipped in to the non-performing category by now. But if so the outstanding interest would probably be capitalised and may still be available in the future. There is also the issue of Lloyds insurance on a proportion of the loan book where a loss is incured.

The problem is we don't know this level of detail yet and will have to wait till Annual Report 2009 to find out.

But there must still be some interest income stream that was applied to loan repayments that now can be redirected to distributions.

The PTQ action is the one to watch - not that I think we will see any return, but windup of OCV will see the liquidators looking at the insolvency and director liability issues in greater detail.

MARCOM