KKV Secured Loan Issue Valuation Update

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Update of the valuation of the KKV Secured Loan issue – following a reassessment of the whole wallet, assisted by the review of certain assets undertaken by KPMG, the net asset value as at June 30, 2020 is currently estimated at 128.8 million pounds sterling (36.2 pence per share) for the ordinary actions and £ 94.7million (68.2p per share) on C shares. However, these revised NAVs are still subject to audit and therefore it is to be expected that some adjustments will be made to the NAV once they have been reviewed by the auditors.

The movements in the two portfolios are as follows:

Ordinary shares, the total amount of the provision increased from £ 116.7million to £ 214.1million:

  • phase 1 there were 14 credit lines in phase 1 representing £ 97.8m in assets with a provision for fair value adjustment and impairment of £ 0.1m. The number of credit lines was reduced to 12 representing £ 65.4m in assets with a provision increased to £ 2.2m.
  • phase 2 there were 7 credit lines in phase 2 representing £ 21.0m in assets with a provision for fair value adjustment and impairment of £ 3.0m. The number of credit lines is reduced to 1 representing £ 1.2m in assets with a provision of £ 0.2m.
  • at stage 3 there were 14 credit lines at stage 3 representing £ 195.8m in assets with a provision for fair value adjustment and impairment of £ 101.3m. The number of lines of credit increased to 22 representing £ 254.4m in assets with a provision increased to £ 192.5m.
  • Equity and operating leases, there were 5 lines representing an initial balance of £ 20.1million held at a fair value of £ 7.8million, reflecting write-downs of £ 12.3million. The same assets are now held at a fair value of £ 1.0million, reflecting an increase in impairments to £ 19.1million.
  • cash on hand was £ 3.0 million.

C shares, the total amount of the provision increased from £ 9.3m to £ 43.3m:

  • phase 1 there were 14 phase 1 credit lines representing £ 82.7m in assets with a provision for fair value adjustment and impairment of £ 0.0m. The number of credit lines was reduced to 11 representing £ 53.8m in assets with a provision increased to £ 1.4m.
  • phase 2 there were 3 credit lines in phase 2 representing £ 22.6m in assets with a provision for fair value adjustment and impairment of £ 3.2m. The number of credit lines was reduced to 2 representing £ 9.3m in assets and the provision decreased to £ 0.7m.
  • at stage 3 there were 4 credit lines at stage 3 representing £ 23.8m in assets with a provision for fair value adjustment and impairment of £ 6.1m. The number of credit lines increased to 8 representing £ 66.3m in assets and the provision to £ 41.3m.
  • available cash was $ 6.0 million.

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KKVL: Update of the valuation of the KKV Secured Loan issue


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