Allco fund to lose millions from UK investment
AdvertisementEmail Print Normal font Large font AdvertisementOctober 17, 2008 - 11:15AM
One of the Allco funds, Rubicon Europe Trust Group, is likely to lose the money loaned for nursing homes in the UK, as the borrower walks away from STG1.2 billion in debt and the value of the properties tank.
Rubicon Europe had invested STG52.2 million ($131.09 million) in subordinated bonds issued by UK corporate finance company Three Delta, backed by the NHP Portfolio of nursing homes, which mature on January 15.
Three Delta had indicated to Rubicon Europe and other lenders that it won't extend or repay the loan at its maturity, giving up the 12% of equity it holds in the portfolio.
The portfolio is likely to be valued at less than the value of the money lent, resulting in nil proceeds for Rubicon if a sale occurs at that level.
A valuation is expected by October 24.
Separately, Rubicon Europe said it received all the outstanding rent from Homes Place, a key tenant in the Medicent properties in Austria.
Rubicon Europe shares fell 0.3 cent, or 30%, to 0.7 cent in early trade.
Allco shares were flat at 17.5 cents.
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