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CQS RIG Finance Fund LTD (RIG)

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Wednesday 22 April, 2009

CQS RIG Finance Fund LTD

Amendments to Financing Arrangements

22 April 2009

For immediate release on 22nd April 2009

                             SOUTH AFRICA OR JAPAN                             

                 CQS Rig Finance Fund Limited (the "Company")                  

                     Amendments to Financing Arrangements                      

As previously announced on 31 March 2009, and since the Company's shares were
suspended from trading on AIM on 30 October 2008, the Company has been pursuing
discussions regarding its financing position with its lenders.

The Company is pleased to announce that those discussions have now been
concluded and the Company has today secured amendments to the terms of its
financing arrangements (the "Facility"), as described below. The Company is
working to finalise its report and accounts for the year ended 30 September
2008 and to clarify its financial position accordingly. Following this, a
further announcement will be made as to the Company's ability to return to
trading on AIM and the CISX.

Summary of the Facility

The Company and Credit Suisse Securities (Europe) Limited ("CS") have agreed to
enter into the Facility, to amend the Prime Broker and Custodian Agreement
dated on or about 5 December 2006 (the "PB Terms") and to terminate certain
other existing arrangements with CS and its affiliates, such that the Facility
and the PB Terms will govern the ongoing relationship between the Company and
CS and the terms of the Company's existing borrowings from CS, which amount to
approximately NOK 60,505,509.29 and USD 45,195,277.58 and EUR 1,817,787.86 and
GBP 39,512.20 (credit) (the "Currency Amounts"). It is not intended that the
Company will make any further borrowings under the Facility.

Under the Facility, CS is obliged to make advances available to the Company
until 21 October 2010, unless the agreement is terminated prior to that time.
Advances made under the Facility will attract interest at a rate of the
relevant LIBOR rate for each Currency Amount (except for NOK which has a NIBOR
rate) plus 4 per cent. A fee of US$2,800,000 is payable by the Company at the
end of the term of the Facility (including on early repayment of the Facility)
or on its earlier termination. The Company has granted CS the right to require
an independent review of the Company's business and portfolio in 12 months

CS may require early repayment of borrowings following the occurrence of
certain events of default and termination events, including failure to pay,
insolvency related events, breach of representations or warranties, the
termination of CQS (UK) LLP as the Company's investment adviser and breach of
the Company's obligations to provide information to CS. In addition, the
Company and CS have agreed an estimate of the aggregate recovery value of the
bonds comprising the Company's portfolio which is substantially higher than the
current long market value of the Company's portfolio. CS will have the right to
terminate the Facility if, as and when realisations of individual bonds are
made, the aggregate difference between the estimated recovery values and the
amounts actually received by the Company exceeds 20 per cent. of the estimated
aggregate recovery value of the portfolio. CS has agreed that it will not,
however, call for early repayment of borrowings as a result of any event of
default which may have occurred under the PB Terms prior to the date of the

The Facility contains restrictions on the use of receipts by the Company other
than as budgeted for and agreed with CS and CS approval is required for any
changes to the composition of the Company's portfolio. In addition, CS will
retain set-off rights pursuant to which it may deduct any charges or costs owed
by the Company from any account or assets of the Company held by CS. The
Company also grants security over its cash and accounts in relation to the
Facility and in respect of any other amounts owed by the Company to CS or any
of its affiliates. The PB Terms contain indemnities in favour of CS, which are
customary for this type of agreement.


Alastair Moreton

Arbuthnot Securities Limited

Telephone 020 7012 2000


Kleinwort Benson (Channel Islands) Fund Services Limited

Telephone 01481 727111

This announcement is not an offer to sell or a solicitation of any offer to buy
any securities in the United States or in any other jurisdiction. Neither this
announcement nor any copy of it may be taken, transmitted or distributed,
directly or indirectly, into the United States, Canada, Australia, the Republic
of Ireland, the Republic of South Africa or Japan or to any national of such
jurisdictions. Neither this announcement nor any copy hereof may be distributed
in any other jurisdictions where its distribution may be restricted by law and
persons into whose possession this document comes should inform themselves
about, and observe, any such restrictions. Distribution of this announcement in
the United States, Canada, Australia, the Republic of Ireland, the Republic of
South Africa, Japan or any such other jurisdictions may constitute a violation
of the law of such jurisdictions.

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