 |
February 13, 2008 |
|
|
|
 |
MACQUARIE FORTRESS: Suspends Interest Payments Macquarie Fortress Investments Ltd., the investment vehicle of Macquarie Bank, said in reports that it won't be able to make interest payments and doubts that it would be able to refinance debts, which will expire in April. The bank, according to the Australian, is on the verge of winding up the fund after its net value experienced a 27% cut in just three days, mainly from its investment losses in the U.S. According to Bloomberg News, Macquarie's U.S. senior secured loans' price decline has resulted to US$8 million in losses to its Fortress Australia Notes. The same report added that because of the liquidity problems in the credit markets, the funds' investors could lose up to 25% of their investments. The Financial Times says that the fund's shares dropped 56% on Monday as a result of selling debt investments at a discount because of some breaches in bank covenants. Macquarie Fortress Investments Limited is a wholly owned subsidiary of Macquarie Bank Limited. Macquarie Fortress Investments Limited is the Trustee of the Macquarie New Zealand Fortress Notes Trust. The Trust is engaged in making investments in unlisted notes issued by a Cayman Island entity, the return on which is linked to a leveraged portfolio of the United States dollar denominated senior secured loans. |
|
|
||
|
Today's Top Stories have been selected from the Troubled Company Reporter - Asia Pacific. To receive the Full TCR-AP please CLICK HERE.
