Close Enh Ii Share Discussion Threads

[hezza123] 08/7/2013 12:35

Same here... :-(

[badtime] 08/7/2013 10:56

and still i wait

[badtime] 03/7/2013 09:56

lol..end of squeaky bum time?

[smarm] 02/7/2013 22:41

1.2p

I can live with that.

Phew.

S

[ianbrewster] 02/7/2013 17:26

Interim Payment

Your Board and the Investment Manager has resolved to distribute an interim redemption payment to shareholders of £1.378 per share, such amount representing the total proceeds received to-date by the issuers of the five Medium Term Notes held by the Company.

The interim redemption payment is expected to be paid to shareholders within 5 business days.

[papy02] 02/7/2013 14:50

thanks earplug, interesting input (no pun intended!)

[earplug] 02/7/2013 14:40

Ok, able to answer my own question they are all 0% interest instruments, so there really should be no issue here on the face of it unless there is some piece of wacky jurisprudence in one of the issuing jurisdictions that withholds on any payment to a tax haven including the proceeds of derivative contracts.

[earplug] 01/7/2013 16:34

As a further thought I wonder if what we are receiving under the note is not in fact interest, but rather the proceeds of a derivative contract embedded within the note. If it is not interest then perhaps that would be the reason to expect no wht. Does anyone know more about how the underlying derivative is embedded ?

[earplug] 01/7/2013 16:29

I wonder if we are looking at a 12.5% wht on the interest payable by Mediobanca on the basis that the interest is paid to a Guernsey entity (Italian black list country on the basis of tax haven status). I found another Italian bank issued MTN prospectus on the Internet that suggests that 12.5% is the right rate rather than 20% since the debt is longer than 18months.

If this is correct, and the MTN has no gross up then this is a bit strange since from what I can see these rules have been around for a long time and probably have not come in after the note was issued - which makes one wonder whether there is some form of exemption that I have missed or someone dropped the ball at inception.

[papy02] 01/7/2013 11:18

wolstencroft, yes, true (hopefully!).

So the £300k they were planning to cream off for themselves from the final payout would go some way to solving the issue. (If the tax cannot be avoided)

[wolstencroft] 01/7/2013 09:55

surely the withholding tax will be on the gain, ie. 40%

so it might be 15% * 20% * 40% = or about 1.2% of the proceeds

[papy02] 29/6/2013 23:05

If the withholding tax turns out to be 15% (which is common in international tax treaties, though not universal), and they state it's for one bank-bond out of the 5 (so 20%) then the amount at risk here is 15% * 20% = 3% of the final maturity amount.

That would be approx. £1.9m (approx. 4.2p/share).

Which is conveniently close to Close's £1.6m initial charges, plus the £300k that Close planned to siphon off the final payout.

Hang on, I think I can visualise an equitable solution to this mess;-)

Just saying.

[praipus] 29/6/2013 17:13

hxxp://www.sharesoc.org/

hxxp://www.fca.org.uk/

[hezza123] 29/6/2013 15:22

Only just seen the latest RNS. FFS... If we don't receive the full 139p, might it be worth us taking action via Sharesoc? Never really been in this position before! Fortunately didn't have too much in this, but it's becoming a bit of a headache to say the least.

[badtime] 28/6/2013 20:27

Shocking...there reputation is on the line

[tiltonboy] 28/6/2013 17:56

I trust Close Bros will make up the difference if they are unable to claim back the witholding tax.

What an absolute shambles!

[smarm] 26/6/2013 23:39

Thanks tootsie, much appreciated.

S

[praipus] 26/6/2013 15:40

Thanks tootsie

[tootsie] 26/6/2013 15:29

I have spoken to person who is dealing with this fund at Anson and they advised me that they have had proceeds from 4 of the 5 debt securities but are in discussions with the fifth about the exact amount payable. The dispute is centred around amount of interest attributable to the debt security and is not 'substantial' within the 'bigger picture'. Expected to be resolved within the next 7 days.

[praipus] 26/6/2013 15:14

Indeed I wonder what the real problem is ...

DEBT SECURITIES PORTFOLIO HOLDINGS
GBP

Caisse Centrale du Credit Immobilier de France
EMTN 14 June 2013 9,050,000
Erste Bank EMTN 14 June 2013 9,050,000
Irish Life & Permanent Plc EMTN 14 June 2013 9,050,000
Mediobanca SpA EMTN 14 June 2013 9,050,000
SNS Bank NV EMTN 14 June 2013 9,050,000