Update re Holdings

 

TIDMCED 
 
RNS Number : 5878C 
Close Enhanced Commodities Fund Ld 
16 November 2009 
 

Close Enhanced Commodities Fund Limited (the "Company") 
 
 
Update on the Company's Holdings 
 
 
The Company wishes to update Shareholders on the status of an issuer of one of 
the Debt Securities held by the Company. As Shareholders are aware, in order to 
fulfil its investment objective the Company purchased six Debt Securities, 
including one issued by Glitnir Banki HF. This Debt Security has a nominal value 
of GBP6,740,000 and accounts for approximately 19 per cent of the total nominal 
value of the Company's Debt Securities. 
 
 
In the event of a default by an issuer of a Debt Security purchased by the 
Company, the Company will rank as an unsecured creditor in respect of sums due 
from the issuer of that Debt Security. In such event, the Company may (in 
respect of that Debt Security) receive a lesser amount of money than the amount 
due pursuant to the terms of the Debt Security, may actually receive the money 
at a different time than would otherwise have been the case and/or the amount 
received may be zero. Any losses will be borne by the Company and returns to 
Shareholders would be significantly adversely affected. 
 
 
As a result of Glitnir Banki HF's reported failure to make payouts due on other 
outstanding debt obligations, the Board of the Company considers it likely that 
it may not pay in full on its obligation pursuant to the relevant Debt 
Security. Whilst recovery rates from issuers that default vary, and in this case 
are currently unknown, the worst case scenario would see the Company receive 
nothing from Glitnir Banki HF at the maturity of the Debt Security. 
 
 
The Winding-Up Board for Glitnir Banki HF has asked all parties claiming debts 
of any sort or other rights to submit claims by 26 November 2009. Consequently 
the Company has today submitted a claim form, claiming a total of 
GBP17,025,335.40 in respect of this Debt Security, such amount being equal 
to GBP2.52 per GBP1 nominal. 
 
 
The amount claimed should not be considered a forecast of the Final Capital 
Entitlement nor is it a reflection of the net asset value per Share. The Final 
Capital Entitlement per Share per the Company's investment objective will not be 
known until after the end of the life of the Company when the End Value of the 
Commodity Portfolio is known and may be higher or lower than the amount 
currently claimed. 
 
 
Shareholders should be aware that it is likely that Glitnir Banki HF may not pay 
the Company the full amount claimed or, indeed, anything at all.  Any claims 
which are paid may be paid before or after the end of the life of the 
Company and in the case of early payment it may not be possible to reinvest the 
proceeds in Debt securities which replicate the investment characteristics of 
the original Debt Securities. Any claims which are paid may be paid in 
currencies other than Sterling and/or in forms other than cash. Any payments 
received by the Company may therefore be subject to currency fluctuations and/or 
other market movements. 
 
 
The Board of Directors will continue to update Shareholders as appropriate. 
 
 
Defined terms in this announcement shall have the meaning assigned to them in 
the Prospectus. 
 
 
For further information contact: 
 
 
Anson Fund Managers Limited 
 
 
Secretary 
 
 
Tel: [phone] 
 
 
16 November 2009 
 
 
E&OE - In transmission 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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