MONTREAL, Dec. 1, 2016 /CNW Telbec/ - Global Diversified Investment Grade Income Trust II ("Global DIGIT II") (TSX: GII.UN) issued a press release on November 28, 2016 confirming that Deutsche Bank AG, Canada Branch's ("DB") valuation process had ended and that it had received a confirmation that the recovery level or final price was zero for two reference obligations, representing a loss of $3.90 per unit. Pursuant to the Financial Contract, this loss is limited to $2.79, therefore being a total loss for the remaining credit exposure.
As a result of the upcoming loss settlement with DB, the only remaining assets of Global DIGIT II will be its cash position. The net asset value as at November 15, 2016 was $0.28 per unit, representing the cash position and a market premium on the collateral.
Global DIGIT II is currently assessing the liquidation costs and contingencies to be incurred up to its dissolution but has no reason to believe that the remittance to the unitholders could be less than $0.21 per unit as disclosed on January 19, 2016. It is estimated that any remittance would be made no later than during the first quarter of 2017.
In addition, Global DIGIT II has now been advised by the TSX that its units will be delisted at the close of market on December 30, 2016 as it does not meet the listing requirements any more.
About Global DIGIT II
Global DIGIT II provides an economic interest in an equity tranche of credit default swap agreements in respect of portfolios of residential mortgage-backed securities, commercial asset-backed and mortgage-backed securities, consumer asset-backed securities, structured exposures to mortgage-backed and asset-backed and corporate securities.
SOURCE GLOBAL DIVERSIFIED INVESTMENT GRADE INCOME TRUST II
For further information: Antoine Fourgeaud: 514-394-6645, http://info.fbn.ca/trusts