Investors in Henderson's (HGI.LN) ailing infrastructure fund said they expect a refinancing agreement to be reached this month, after the fund revealed a two-thirds loss in value since its launch three years ago.

An investor, who declined to be named, said: "A round of talks was held last Friday and we expect an agreement to be reached in the next two weeks."

Other investors, who also declined to be named, confirmed the negotiations. One said: "They have to refinance."

The fund is entirely invested in John Laing, a UK public infrastructure company, and its projects. In a report to investors obtained by Financial News, Henderson said that debt of GBP155 million, dating back to its acquisition of John Laing in 2006, is set to expire on December 21. Henderson is in negotiation with its lenders including West LB to refinance the debt, according to the report.

At the same time, the report said that John Laing needs new capital in order to fund investments in new projects, and it is in the process of selling off assets. The infrastructure fund is negotiating a partial sale of its interests in Abbotsford Hospital & Cancer Centre and Vancouver General Hospital, both of which are based in Canada, according to the report. The fund is also working through a sale of half of its stake in the Greater Manchester Waste Management project, a GBP640 million project signed in April.

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Posted by rjorr at October 2, 2009 7:29 AM