Scribona acquires loans from Citibank

Scribona acquires loans from Citibank

Scribona has today signed an agreement with Citibank to acquire the bank's loans
to European Equity Tranche Income Limited (EETI).

EETI has been listed on the AIM index of the London Stock Exchange since 2006
and is a company that invests primarily in financing of “first loss” positions
of residential mortgage-backed securities in Europe. For more information about
EETI, visit the company's website www.eeti.co.uk.

EETI´s nominal loan portfolio amounts to more than €120 million and consists of
investments in Italy, Spain, Portugal, France, the Netherlands, Germany, the
United Kingdom and Ireland.

EETI has previously obtained all of its external financing from Citibank.
However, the company's investments have lost significant value during the
financial crisis in the autumn of 2008 and refinancing in connection with the
loan's maturity date on 15 December 2008 is no longer possible. Following
negotiations with EETI and Citibank, Scribona has presented a proposal to meet
EETI´s financing requirements. 

The different components of the package are as follows:  
1. Scribona will today acquire from Citibank all of its loans outstanding to
EETI, amounting to a nominal €30 million. The purchase price is €14 million and
the acquisition costs are estimated at approximately €0.1 million.
2. An extraordinary general meeting of EETI that is planned to be held January
2009 is proposed to resolve on a new share issue through which Scribona will
convert €10 million of the loan into stock. Scribona will guarantee the new
share issue. Existing stockholders have the right to subscribe for the new
shares up to a final maximum holding of 48.6%. Depending on the acceptance
level, Scribona's holding will be in the range of 51.4 - 90.4%.
3. Provided that the extraordinary general meeting approves the new share issue,
Scribona will remit €15 million of the nominal loan amount. EETI will then have
a remaining loan debt to Scribona of €5.7 million. 

Comments from Scribona's CEO Lorenzo Garcia
”The investment in EETI is a result of the opportunities arising in the
financial market now that property valuations are adapting to market conditions.
We believe that the acquired loans and future stockholding in EETI will show
positive development, and are continuing to evaluate the options open to
Scribona in a changing financial and property market”. 

 For additional information contact:
Lorenzo Garcia, CEO of Scribona, phone +46-(0)737 08 38 88

Visit also : www.scribona.com