Result of EGM
FRM Credit Alpha Limited (the "Company")
Result of General Meeting
At the extraordinary general meeting of the Company's shareholders held today, the special resolution facilitating the managed wind-down of the Company was passed. A copy of this resolution can be accessed via the National Storage Mechanism, which is located at http://www.hemscott.com/nsm.do.
As indicated in the circular to shareholders dated 4 February, 2011 (the "Circular") the Company's new investment policy will be "to realise the Company's existing investments in an orderly and timely manner, with a view to distributing cash to Shareholders (in accordance with their rights to distributions on a winding-up as set out in the Articles) at appropriate times as sufficient investments are realised. The Company will not make any new investments other than in cash or cash equivalents pending distribution of cash to Shareholders".
The return of cash to Shareholders will be effected through compulsory redemptions of Shares at times determined by the Directors. In determining the timing of any redemption, the Directors will take into account the amount of cash available for distribution and the costs associated with such redemption. Shareholders will receive the proceeds of redemption at a value equal to the prevailing Net Asset Value per Share as at the relevant Redemption Date. The costs of redemption will be reflected in such Net Asset Value per Share. Before each redemption of Shares, the Company will announce:
• the relevant Redemption Date (on which redemptions will become effective);
• the percentage of the Company's issued share capital to be redeemed by the Company on that
Redemption Date;
• the Net Asset Value Date for the calculation of the applicable percentage of Shares in issue; and
• any additional information that the Board deems necessary to advise Shareholders in connection
with the redemption.
Subject to the assumptions and risks outlined in the Circular, the Directors expect to make a first distribution of cash to Shareholders by the end of May 2011.
The Company estimates that it will be able to pay out approximately 45-48% of the Company's Net Asset Value as at 31, January 2011 (the most recently published final Net Asset Value as at the date of this announcement) by the end of May 2011. However, market movements and other matters or events, such as the Company not receiving redemption proceeds from its underlying holdings in a timely manner, may result in a lower or higher amount being available for distribution to Shareholders. An announcement will be made in due course setting out further details in relation to the proposed first cash distribution.
Unless otherwise defined, terms used in this announcement have the same or equivalent meaning as in the Circular.
The Board reserves the right at its discretion to extend or bring forward any of the dates referred to in this announcement, or to alter any estimated cash distribution amount. Any revised date or amount will be notified to Shareholders by a further announcement through a Regulatory Information Service provider.
Enquiries:
Chris Brierley
Financial Risk Management Limited
020 7968 6136
Jane Lewis
Winterflood Investment Trusts
020 3100 0295
This information is provided by RNS