Overview
Global Resources has announced that a fall in its net asset value means that its total assets equate to 3.8x the value of its convertible. One of the covenants that GRIT was obliged to abide by when the convertibles were issued is that the asset cover should not drop below 4x. Otherwise the convertible holders have the right to ask for immediate repayment at par. GRIT has 10 days to rectify the situation however and the Board are examining their options.
GRIT : Global Resources 9% convertible breaches covenant