Published to the OMX Nordic Exchange via Company News Service on 1 January
2009.
Postponement of redemption of DKK 30 million bond series, ISIN code
DK0003444941.
The company is to notify that the redemption of the company's nominal DKK 30
million issued bonds, ISIN code DK0003444941, unfortunately, will not happen by
01.01.2009 settlement day, as originally planned.
The reason for the failure to settle is that there is a need for short-term
interim financing to fund the redemption of the above bond series, as the
company does not have sufficient cash to handle the settlement in full. Despite
strenuous efforts to raise the short-term interim financing, it has not been
possible for Landic group to raise this in the current financial market, which
is strongly marked by the current banking crisis.
A review of the original bond prospectus shows the need for interim financing,
as cash at year-end 2008 in the budget is not sufficient to implement the
settlement without a short-term interim financing. It has in the initial budget
been a prerequisite to obtain such interim financing, which is deemed not to be
possible in the current market.
The company however expects to be able to redeem the bonds in the course of
2009.
However, this requires an acceptance from the senior lender and which is
currently being worked on.
The company will revert later with information on repayment, etc., when there
is more substantial and secure information thereon.
The company will also discuss the situation with the Bond Bank in order to
decide what actions the company is committed to including a call for bond
owners' meeting.
For the sake of good order please note that interest payments to the bond owner
due as per 1 January 2009 (the annual interest payment) will take place as
originally planned in all 3 Bond series.
Please address questions relating to this Notice to Michael Sheikh, Chairman,
on phone +45 3378 4000.
