Haka,i would like to know your view on the financial results and...

Haka,

i would like to know your view on the financial results and the debt restructuring outcome.

To me, the results are not that good. However the no twist, no D2E deal forcing debt restructuring outcome seems to show VPG's cash flow strengh to me.

What is also encouraging is that VPG complied with all LVR and ICR covenants as at 31 Dec 08, and that the new asset level LVR is set at 55% (page 22).

Deleveraging is not forced upon it, though very much encouraged via the sliding scale margin of 3-4.5%.

Based on its current liquidity position, it at least has breathing space until Sept 2010 (or even Sept 2011, if economic situtation and property value improves and asset level LVR is below 45%, refer page 22 again)

Scarborough payment deferral, if allowed without D2E will provide it with additional liquidity buffer. But does not appear absolutely necessary.

Presumably, VPG is in a better shape than some of the UK REITs u mentioned previously in ur post?