E-MAC Program BV - Compartment NL 2007-III to lack funds for put option

By Wendy Van Sickle

Columbus, Ohio, May 24 – E-MAC Program BV - Compartment NL 2007-III anticipates it will not have the funds needed to redeem any notes put back to it on July 25, according to a company filing with the London Stock Exchange.

The July 25 put option applies to the issuer’s $415.6 million senior class A1 notes, €205.8 million senior class A2 notes, €13.2 million mezzanine class B notes, €9.9 million junior class C notes, €12.4 million subordinated class D notes and €1.7 million subordinated class E notes. The notes mature in 2047.

According to E-MAC, the MPT provider will not, and also does not have the financial means to, grant the servicing advance loan on or before the put date.

Furthermore, the issuer said it doubts that it will succeed in finding any third party that would be willing to purchase mortgage receivables or to provide the servicing advance loan on or before the put date. Consequently, it expects that it will not have sufficient funds available to redeem any notes put back by their holders.

Noteholders who had intended to exercise their put options if E-MAC could fund the redemption or who still wish to exercise their options were advised to do so in the notice.

The issuer said that in light of its expectation that it will not have enough money to fund the put option, any notes for which a put option have been exercised will not be subject to blocking up to the put date.

ABN AMRO Bank AG (+31 20 344 2000 or corporate.broking@nl.abnamro.com) is the principal paying agent.

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