RNS Number : 2336D
RAB Special Situations Company Ltd
11 September 2008
RAB Special Situations Company Limited (the "Company")
RAB Capital plc ("RAB Capital") announced a restructuring proposal yesterday for two
vehicles which form part of the RAB Special
Situations strategy.
The Company invests in RAB Special Situations (Master) Fund Limited (the "Master Fund"),
alongside Cayman incorporated RAB Special
Situations Fund Limited and the Delaware incorporated RAB Special Sits LP (the "Parallel
Funds"). As part of the restructuring, investors in
the Parallel Funds have been asked to agree to a 3 year postponement of the next redemption
date from 1 October 2008 to 3 October 2011, in
return for which management and performance fees would be reduced. The proposals will be voted
on by the Parallel Funds on 29 September
2008. The proposed restructuring is in response to significant redemption requests in respect
of the Parallel Funds, the prevailing credit
environment and the lack of liquidity in the markets in which the Master Fund is primarily
invested.
RAB Capital noted that at the time of their announcement a number of major investors in
the Parallel Funds had indicated their support
for the introduction of the lock up. RAB Capital believes that the proposals will ensure the
long-term stability of the Special Situations
strategy so as to provide a better prospect for the generation of value in the underlying
investments and for the equitable treatment of all
investors. If investors in the Parallel Funds do not vote to extend the redemption period, the
alternative proposal is that the Parallel
Funds will be liquidated.
The existing rights of the Company vis a vis the Master Fund are unaffected by these
proposals.
The Directors are currently reviewing the Company's position and a further announcement
will be made once the outcome of the votes of
holders in the Parallel Funds, due on 29 September 2008, is known.
Enquiries to: Company Secretary
Elysium Fund Management Limited
No 1 Le Truchot
St Peter Port
Guernsey GY1 3JX
Tel 01481 810100
Website www.elysiumfundman.com
Nominated Adviser and Joint Broker
KBC Peel Hunt Ltd
Guy Wiehahn
0207 418 8900
Joint Broker
Winterfloods
Katie Standley
0203 1000297
This information is provided by RNS
The company news service from the London Stock Exchange
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