Trading Update

RNS Number : 7376L

T2 Income Fund Limited

16 January 2009

 



T2 Income Fund Limited Press Release - 16 January 2009

Trading Update

T2 Income Fund Limited (the 'Company') announced today the following:

1) the recent sale of its senior secured loans of WTW Wissenschaftlich-Technische Werkstätten GMBH, an indirect subsidiary of Nova Analytics Corporation; and

2) that the Company's investment in the Income Notes of its subsidiary, T2 Income Fund CLO I LTD (the 'CLO') generated net proceeds of approximately US$1.5 million (GBP 1.1 million) for the three month period ending 31 December 2008. Of this amount, the Company received cash of approximately US$699,000 (GBP 481,000) from the CLO on 15 January 2009, while the remaining cash amount of approximately $851,000 (GBP 586,000) was diverted and retained within the CLO as a result of various tests that were not met as of the 2 January 2009 test date. The next test date is 2 April 2009. While we continue to monitor the situation closely, we currently have only limited visibility with respect to which of the CLO tests may or may not be met on that date or other future dates, and whether any further interest diversions may occur and, if so, the magnitude of those diversions.

As described in previous press releases, the CLO indenture contains a variety of covenants, compliance with which could be made more difficult or impossible should credit markets continue to deteriorate.  

As a result of the above, the Company has increased its consolidated cash position from approximately GBP6.6 million as of 30 June 2008, to approximately GBP12.5 million as of 15 January 2009. Of that amount, GBP4.0 million is directly held by and immediately available to the Company, while GBP8.5 million is restricted and retained within the CLO.

The report summarising the results of the CLO tests as at 2 January 2009 test date can be found at the link below

 http://www.rns-pdf.londonstockexchange.com/rns/7376L_-2009-1-15.pdf  

Contact: 

Patrick Conroy
T2 Income Fund Limited
[phone]

Philip Secrett

Nominated Adviser

Grant Thornton UK LLP

[phone]

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