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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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Alternative Liq | LSE:ALSL | London | Ordinary Share | GG00B1WTM617 | ORD NPV |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 42.25 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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0 | 0 | N/A | 0 |
TIDMALSL
RNS Number : 3342L
Alternative Liquidity Solutions Ltd
03 September 2012
ALTERNATIVE LIQUIDITY SOLUTIONS LIMITED
(The "Company")
(Registered in Guernsey - Number 46912)
Registered Office:
2(ND) FLOOR, REGENCY COURT, GLATEGNY ESPLANADE,
ST PETER PORT, GUERNSEY GY1 3NQ
TELEPHONE: +44 1481 720321
FACSIMILE: +44 1481 716117
E-MAIL: Funds@bfgl.com
For immediate Release 3 September 2012 ---------------------- -----------------
Alternative Liquidity Solutions Limited
Update on Run-Off Shares and Estimated Timing of Distributions
Further to the announcement by Alternative Liquidity Solutions Limited (the "Company") of its interim results on 29 August 2012, the Board is hereby providing certain additional information to shareholders. This information relates to the liquidity profile of the Company's portfolio and to the anticipated mechanism for returning capital to those shareholders who elect to receive Run-Off Shares pursuant to the proposed reconstruction of the Company and comprises:
1. the expected timing and quantum of redemption proceeds from Redeemable Funds and distributions to shareholders arising from these and the Company's free cash;
2. further detail in relation to the valuation of the Long Lock Funds and Liquidation Share Classes, including the assumptions made by the Company's independent valuation advisers as to the timing of realisations of these investments; and
3. clarification of the mechanics for the creation of the Run-Off Shares and how this interrelates with the Company's proposed fund raising.
The Company's investment portfolio comprises three categories of funds:
-- funds which have stated redemption dates (of varying length and frequency) which are currently being honoured at the managers' stated net asset values ("Redeemable Funds");
-- funds which were established as closed ended entities with capital returned when the underlying investments of those funds are realised ("Long Lock Funds"); and
-- funds which were originally open-ended but have become illiquid and suspended redemptions and have created liquidating share classes, with capital returned when the underlying investments are realised and capital distributed ("Liquidation Share Classes").
The Board engaged independent specialist valuation experts, Time 2 Recover Limited ("T2R"), to assist with the valuation of the investment portfolio as at 30 June 2012. The table below provides an analysis of the valuation of the investment portfolio, based on the Revised Valuation Methodology described in the interim results. This methodology utilises a present value approach, discounting expected future recoveries at an appropriate rate, reflecting the uncertainty over quantum and timeframe of such recoveries:
Investments Expected future Weighted Discount Present at managers' recovery average rate value valuations estimated (unaudited) recovery period GBP GBP Years GBP Redeemable Funds 7,881,392 7,868,387 0.4 20% 7,234,799 Long Lock Funds 6,051,153 6,043,129 3.5 20% 3,122,355 Liquidation Share Classes 1,494,727 1,440,955 1.8 30% 900,818 Total 15,427,272 15,352,471 11,257,972 ============== ================ ==============
The expected future recoveries and weighted average recovery periods set out in the table above are based on a detailed assessment by T2R of each of the Company's underlying portfolio holdings. This assessment involved qualitative analytic reports on each underlying investment as well as a quantitative valuation to capture the time horizon and recovery value of all underlying investments. The methodology used involves the following principles:
-- where available, recent transactions by third parties in the same securities or fund interests;
-- qualitative analytic reports on each underlying fund that seek to identify materially negative effects and reasons for impairment;
-- the present value of expected future cash recoveries from investments, discounted at a rate which the Board believes sufficiently compensates investors for the illiquidity and risk associated with the uncertainty of timing and quantum; and
-- the nominal value where fair market value is deemed consistent with the stated NAV.
Shareholders should note that, notwithstanding that the estimated present values incorporated within the Company's accounts are considerably more conservative than the valuations provided by the underlying managers, such figures are only estimates as to the quantum and timing of recovery on each of the Company's assets. There can be no assurance that the eventual recovery values will equal these estimated values, nor any assurance that recoveries will occur within the estimated timeframes. Actual results, performance or events may differ materially from those expressed or implied in these estimates.
1. Estimated distribution timetable of free cash and redemption proceeds from Redeemable Funds
The table below sets out the Company's cash as at 30 June 2012 net of outstanding capital commitments ("Free Cash"), the Board's current estimation of the timing of receipts from the Redeemable Funds and the distributions the Board would anticipate being able to make to redeeming shareholders from these sources. The table also shows other estimated future recoveries from the Long Lock Funds, Liquidating Share Classes and outstanding capital commitments, the timing of which is not currently known. The assumptions upon which these estimates are provided are set out below the table.
Free cash Redemptions Distributions Per share (GBPm) (GBPm) (GBPm) (p) ---------------------------------- ---------- ------------ -------------- ---------- Cash & Funds where redemptions have been placed ---------------------------------- ---------- ------------ -------------- ---------- September 2012 3.67 1.98 ---------------------------------- ---------- ------------ -------------- ---------- October 2012 1.58 ---------------------------------- ---------- ------------ -------------- ---------- November 2012 1.45 (7.28) 20.3 ---------------------------------- ---------- ------------ -------------- ---------- December 2012 - ---------------------------------- ---------- ------------ -------------- ---------- January 2013 0.41 ---------------------------------- ---------- ------------ -------------- ---------- February 2013 0.40 (1.89) 5.3 ---------------------------------- ---------- ------------ -------------- ---------- March 2013 0.07 ---------------------------------- ---------- ------------ -------------- ---------- April 2013 0.29 ---------------------------------- ---------- ------------ -------------- ---------- May 2013 0.40 (0.89) 2.5 ---------------------------------- ---------- ------------ -------------- ---------- June 2013 - ---------------------------------- ---------- ------------ -------------- ---------- July 2013 0.86 ---------------------------------- ---------- ------------ -------------- ---------- August 2013 0.40 (1.47) 4.1 ---------------------------------- ---------- ------------ -------------- ---------- September 2013 - ---------------------------------- ---------- ------------ -------------- ---------- Total - Cash & Redeeming Funds 3.67 7.86 32.2 ---------------------------------- ---------- ------------ -------------- ---------- Other expected recoveries - uncertain timing ---------------------------------- ---------- ------------ -------------- ---------- Cash reserved for uncalled commitments 1.19 ---------------------------------- ---------- ------------ -------------- ---------- Long Lock Funds 6.04 ---------------------------------- ---------- ------------ -------------- ---------- Liquidation Funds 1.44 ---------------------------------- ---------- ------------ -------------- ---------- Total - Recoveries with Uncertain Timing 8.68 - - 24.2 ---------------------------------- ---------- ------------ -------------- ----------
The following assumptions have been made compiling the distribution timetable:
A. The redemption terms of the underlying Redeemable Funds are honoured in full and no additional gating or suspension of redemptions is imposed
B. Amounts are based on the valuation of the underlying fund holdings and prevailing exchange rates as at 30 June 2012 and are therefore subject to fluctuations in valuation based on underlying manager performance and foreign currency movements.
C. The first capital return will be made in November 2012 and thereafter will be made quarterly to the extent that there is sufficient cash to justify a distribution.
D. No distributions are assumed from Long Lock Funds or Liquidating Share Classes, although in practice the Board expects that redemption proceeds will continue to be received and will be distributed.
Shareholders should note in relation to the estimates provided in the distribution timetable above the reservations as to the quantum and timing of expected future recoveries previously expressed. Shareholders should also note that the Board reserves the right in its absolute discretion to change the indicated distribution timetable and to alter the quantum of future distributions. Consequently no assurance can be given that distributions will be made, either as to quantum or timing, in accordance with this timetable,
2. Recovery assumptions for the Long Lock Funds and Liquidation Share Classes
The timing of recoveries from the Long Lock Funds and Liquidation Share Classes is uncertain. However, for the purposes of arriving at the estimated present fair value of these funds as set out in the interim accounts for the period ended 30 June 2012, the following assumptions have been made on the quantum and timing of recoveries for each of the underlying holdings:
Investments Expected Weighted Discount Present at managers' future recovery average rate value (unaudited) valuation estimated recovery period -------------------------- --------------- ------------------ ----------- --------- ------------------- Long- Lock Funds -------------------------- --------------- ------------------ ----------- --------- ------------------- Apollo European Principal Finance GBP2,759,546 GBP2,759,546 3.26 20% GBP1,521,979 -------------------------- --------------- ------------------ ----------- --------- ------------------- Ffenics GBP1,207,654 GBP1,207,654 2.42 20% GBP776,856 -------------------------- --------------- ------------------ ----------- --------- ------------------- OCM European Principal Opportunities Fund GBP2,045,200 GBP2,037,655 5.14 20% GBP797,780 -------------------------- --------------- ------------------ ----------- --------- ------------------- SISU Capital GBP38,753 GBP38,273 2.18 20% GBP25,740 -------------------------- --------------- ------------------ ----------- --------- ------------------- Sub-Total GBP6,051,153 GBP6,043,129 3.50 20% GBP3,122,355 -------------------------- --------------- ------------------ ----------- --------- ------------------- Liquidation Shares Classes -------------------------- --------------- ------------------ ----------- --------- ------------------- ADM Gladius GBP132,910 GBP126,264 1.69 30% GBP80,956 -------------------------- --------------- ------------------ ----------- --------- ------------------- Cognis GBP50,487 GBP19,418 1.13 30% GBP14,439 -------------------------- --------------- ------------------ ----------- --------- ------------------- Fortelus Special Stiatuions (SPV) GBP452,619 GBP452,619 3.39 30% GBP186,069 -------------------------- --------------- ------------------ ----------- --------- ------------------- Ironshield Special Situations Side Pocket GBP300,068 GBP300,008 1.13 30% GBP223,116 -------------------------- --------------- ------------------ ----------- --------- ------------------- Kind Street Europe Side Pocket GBP163,159 GBP155,001 1.13 30% GBP115,252 -------------------------- --------------- ------------------ ----------- --------- ------------------- OCM European Credit Opportunities Fund GBP29,534 GBP29,475 2.80 30% GBP14,123 -------------------------- --------------- ------------------ ----------- --------- ------------------- Tisbury Europe GBP9,295 GBP5,949 0.56 30% GBP5,130 -------------------------- --------------- ------------------ ----------- --------- ------------------- Trafalgar Discovery GBP5,262 GBP828 1.02 30% GBP634 -------------------------- --------------- ------------------ ----------- --------- ------------------- Trafalgar Kahala Jet GBP351,394 GBP 351,394 1.13 30% GBP261,101 -------------------------- --------------- ------------------ ----------- --------- ------------------- Sub-Total GBP1,494,727 GBP1,440,955 1.80 30% GBP900,818 -------------------------- --------------- ------------------ ----------- --------- ------------------- 3. Mechanics for returning capital to shareholders
As part of the Company's proposed reconstruction, Shareholders who do not wish to maintain their investment in full in the ongoing vehicle may elect to have some or all of their Ordinary Shares redesignated as Run-Off Shares. This election is expected to take place at or around the same time as the publication of the prospectus in connection with the proposed Equity Fundraising, and will in any event take place before the end of October.
Upon redesignation of the Company's share capital, the assets of the Company will be allocated pro rata between Ordinary Shareholders and Run-Off Shareholders. Accordingly, any cash proceeds received from the redemption or liquidation of the Company's underlying investments will be available on the same pro rata basis either for distribution to Run-Off Shareholders or for reinvestment on behalf of continuing Ordinary Shareholders.
If either the Equity Fundraising is not completed in accordance with its terms on or before 31 December 2012 or the Directors announce publicly that there is no realistic prospect of the Equity Fundraising being completed by 31 December 2012, all of the Ordinary Shares will be automatically redesignated as Run-Off Shares.
The Run-Off Shares will not be listed in order to keep expenses to a minimum.
The information contained herein is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
For further information, please contact:
Jon Macintosh
Saltus Partners LLP
+ 44 20 7499 0200
Harry Stein
FTI Consulting
+44 20 7269 7141
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLIFIAATIVIIF
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