Investment Costs

Sharply declining revenue, increasing ship operating costs the global crisis on the shipping markets has captured well the MPC reefer fleet Fund 1. The investors who have received no dividends for several years, were informed in mid-June that the revenue of the reefer vessels are not sufficient to operate the vessel operating costs and the due loan rates. Therefore, the Fund management of the banks, including HSH was approached north bank due to a suspension of redemption for the years 2012 and 2013. The banks had apparently asked the renovation of the Fund. For the investors, who have received only 14% instead of the forecast 40% payout, was to be expected with a capital increase by 20%. Sharply declining revenue, increasing ship operating costs cause of the economic malaise is the continuing decline in the revenue of reefers. Currently only about 0.38 US dollar would achieved instead of the income calculated in the prospectus of 0.78 US per cubic foot and month. Added continue over scheduled higher vessel operating costs. Risks which have been concealed the most known to us investors of the Fund in the advice. Borrowing in yen another problem is that the Fund has recorded a part of long-term loans of ship in Japanese yen. Its value is compared to the US$ increased since the inception of the Fund by more than 25%, what does an increase in the loan level (calculated in U.S. dollars), as well as the regular load for interest and principal payments to the result. Consequence, borrowing in yen, for the lower interest rates to pay were “to make marketable inalienable ships” served industry insiders. Consulting and prospectus errors: Good for the enforcement of claims for damages for investors of the Fund opportunities good chances – economically – reverse their participation due to standard error of consulting as well as existing prospectus errors. We already represent many investors of the MPC reefer fleet Fund 1 and assert claims for damages.