Fidelity bondholders to receive no further interest payments
Holders of the $75 million of Fidelity Capital Guaranteed Bonds will receive no more interest although they will get their capital back in mid-2013.
Wednesday, August 10th 2011, 10:35PM
by Jenny Ruth
"The unexpected rally in the US bond market last night resulted in further trading losses," Fidelity told NZX.
"Despite the best efforts of our fund manager, the value of the fund has now fallen below the bond floor."
As a result, all funds will be transferred to the fixed portfolio assets and trading of new options has ceased.
Westpac Bank has guaranteed bondholders will get their capital back on July 15, 2013.
Only yesterday, Fidelity warned interest payments were likely to be suspended and the fund's liquidation was possible. The fund's interest payments were suspended twice before and then repaid at a later date.
The NZDX-listed bonds last traded at 19.45%, or $85.057 per $100 face value ahead of today's announcement.
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