Meeting for railway company bondholders

Date: Friday 20th February 2009

HOLDERS of bonds for the Keswick to Penrith railway company are being asked to delay redeeming their bonds to help provide continued funding for the reopening project.

HOLDERS of bonds for the Keswick to Penrith railway company are being asked to delay redeeming their bonds to help provide continued funding for the reopening project.

A meeting of bondholders is to be held in Keswick on 22nd April by the CKP Railways plc to vote an amendment to extend the redemption date from June, 2010, to June, 2015.

Director Cedric Martindale is urging bondholders to vote in favour of the proposals because the delay in redemption will have “distinct benefits” for the company. He said CKP Railways would be able to continue using the funds to develop the re-opening project for the line, which closed in 1972.

Mr. Martindale said progress had been slower than expected due to the non-availability of funding which was originally deemed to be available, and major delays in dealing with local political issues.

The current annual rate of interest four per cent. gross per annum would continue to be due to bondholders.

If the date remains at 2010, the company is likely to have insufficient funds to be able to redeem the bonds.

Holders could convert to shares, but it is likely there would not be profits for some time, from which shareholders could receive dividends. Profits were only likely to accrue if the railway was reopened and trains started operating.