This article is from the Australian Property Journal archive
AFTER failing to restructure the Api Fund, Austock Funds Management Limited is proposing to delist the debt troubled listed entity.
AFML’s fund manager Ian Townsing said it is the company’s intention to wind-up Api.
Api’s debt facility with the National Australia Bank is subject to certain review events, including where the stapling proposal was not approved by both ASIF and Api unitholders before July 21. As the required unitholder approval of the stapling proposal was not obtained, a review event occurred entitling NAB to exercise certain rights under the NAB debt facility, including the ability to require repayment of the debt owing to NAB.
As a result of discussions with NAB, Api and NAB entered into short-term funding arrangements in connection with the NAB debt facility under which Api was required to repay the outstanding debt of $10 million by August 14. This repayment date was subsequently extended to September 30. As at September 01, Api’s outstanding debt owed to NAB is approximately $775,000. In order to comply with NAB’s requirement for repayment by 30 September 2008, further sale of securities will be undertaken.
Townsing said given current debt market conditions and the continuing volatility in Api’s investment portfolio, it does not believe that this debt is capable of being refinanced in the short-term.
He added that company will continue to seek to sell securities in order to repay the NAB debt and ASIF debt, and will work with ASIF and an independent expert to ensure that the terms (including the price) of any transfer of units from Api to ASIF are fair and reasonable.
“Once the NAB debt and ASIF debt are repaid, and security held by those financiers over Api and its assets is released, AFML will proceed with the orderly sell down of Api’s remaining investments with a view towards maximising distributable value for Api unitholders. AFML believes that the orderly wind up of Api and subsequent return of the capital could take six to 12 months.
“AFML will apply to the ASX for Api to be delisted,” Townsing concluded.
Australian Property Journal
