What is the status of the Fund’s liquidation?
The Fund’s liquidation is ongoing.
Information in relation to interim distributions made by the Fund to date and potential future distributions is set out below.
The Fund is party to ongoing litigation, which may have an impact on further recoveries, including prosecuting claims against its former administrator and custodian.
For further details concerning ongoing litigation, and the status of the Fund’s liquidation more generally, kindly refer to previous stakeholder reports (see the ‘Creditor and Investor Information’ section).
What distributions have been made to-date and what are the prospects of future distributions?
In accordance with the statutory distribution scheme, the Fund has declared and distributed 100% of Ordinary Creditors’ principal claims and 100% of Redemption Creditors’ principal claims (both defined below).
Based on the Fund’s cash position and after making the appropriate reserves, there are sufficient assets available to discharge the statutory interest entitlements of the Ordinary Creditors and Redemption Creditors. A number of these parties have already received their statutory interest payments. Ordinary Creditors and Redemption Creditors who have not received a payment in respect of their statutory interest entitlements are encouraged to contact the liquidators at their earliest convenience.
In accordance with section 140 of the Companies Act (Revision 2021), the surplus assets of the Fund are to be distributed to the investors and on 25 November 2020, the Grand Court approved the distribution of the Fund’s surplus assets to the Fund’s investors.
Following the Court’s approval, the liquidators wrote to the Fund’s investors to confirm the dividend rates for the respective share classes.
Following that, and upon receipt of the requisite due diligence documents, the liquidators have proceeded with the first distribution to the Fund’s investors. Investors who have not received a payment in respect of their equity interests are encouraged to contact the liquidators at their earliest convenience.
Who is an Ordinary Creditor?
Ordinary Creditors are unsecured creditors whose principal claims rank ahead of the Redemption Creditors in accordance with the statutory order of priority, as confirmed by the Privy Council in the Herald Representative Proceedings. Included within the class of Ordinary Creditors are January Subscribers (defined below).
Who is a January Subscriber?
January Subscribers are certain prospective investors who submitted subscription requests to the Fund for a trade date of 1 January 2009, but who were never issued shares in respect of those subscriptions, due to the suspension of subscriptions into the Fund and its eventual liquidation. Claims by January Subscribers fall to be treated in the same way as those of Ordinary Creditors.
Who is a December Subscriber?
December Subscribers are investors who submitted subscription requests to the Fund for a trade date of 1 December 2008 and are eligible to be recognised as investors on the Fund’s share register as their subscription payments were not rejected by the Fund’s directors within the prescribed deadline.
Who is a Redemption Creditor?
Redemption Creditors are those creditors who have sums due to them in their capacity as former shareholders of the Fund in relation to their unpaid redemptions. They are comprised of December Redeemers and KYC Redeemers, as defined below:
- December Redeemers are investors whose shares were redeemed pursuant to the Fund’s articles (Articles) on 1 December 2008, but who did not receive redemption proceeds at the time.
- KYC Redeemers are investors whose shares were redeemed pursuant to the Articles on or prior to 1 December 2008, but who did not receive redemption proceeds at the time due to there being outstanding “Know Your Client” and/or other documentation.
How does the Fund distinguish between investors of record and beneficial owners?
An investor of record is the investor noted on the Fund’s share register as the legal owner of the relevant shares. A beneficial owner is a person who has an underlying interest in the Fund’s shares, but who is not listed as the investor of record in respect of such shares.
The liquidators only hold information on, and will therefore only communicate with, investors of record. The liquidators are only permitted to make distributions to investors of record, subject to any Court approved share transfers and/or authorised assignments (see below FAQs on these points).
If you are a beneficial owner, your custodian or nominee shareholding institution (i.e. the investor of record) will be responsible for circulating the liquidators’ updates and forwarding any distributions to you. A beneficial owner wishing to obtain copies of the liquidators’ stakeholder reports and attend the stakeholder meetings may do so subject to authorisation being granted by the investor of record (please see FAQs below for further details).
Are the liquidators able to confirm or provide a statement in relation to my investment in the Fund?
Only investors of record of the Fund can request a shareholding statement or confirmation of shares held.
If you are an investor of record, please contact the person listed on the Contact section of this website.
If you are not an investor of record, please contact your custodian or nominee shareholding institution.
Do I need to file a claim to be eligible for a distribution?
Investors of record are not required to file claim forms (also known as a proof of debt form). The liquidators have written to investors of record regarding the declared distribution and have requested certain due diligence documentation prior to the payment of the same. If you are an investor of record and have not received correspondence from the liquidators in relation to this, please contact the liquidators.
Can I receive copies of the liquidators’ stakeholder reports and attend the stakeholder meetings convened by the liquidators?
Investors of record are eligible to receive the stakeholders’ reports and attend the stakeholders’ meetings. Beneficial owners are only eligible to receive the stakeholders’ reports and attend the stakeholders’ meetings if their investor of record has provided the liquidators with written authority for them to do so.
If you are a beneficial owner, please request your financial institution to liaise with the contact person listed at the Contact section of this website should you wish to attend stakeholder meetings as a proxyholder or obtain copies of the reports.
I am an investor of record in the Fund. Can I transfer / sell my investment to another party?
Under the Companies Act (2021 Revision) any re-registration or transfer of shares in a company in liquidation will be void unless approval is granted by the Grand Court.
Accordingly, if you are an investor of record and wish to transfer your shares to another party, this will require an application being made to the Grand Court. The cost of making such an application to the Grand Court is approximately US$8,000 to US$10,000 and would need to be met by the investor in question.
Parties are on notice that distributions will be made to the investor of record. Take note that the Liquidators will continue to act on the instructions of the investor of record until otherwise directed by the investor of record, or as may be required by Court order.
Please contact the contact person listed at the Contact section of this website should you wish to learn more. Please note that this does not constitute legal or professional advice and the liquidators do not accept any liability in connection with any share transfers.
I am an investor of record in the Fund. Can I assign / sell my rights to receive a distribution to another party?
You may do so, subject to consent from the liquidators. Please contact the contact person listed at the Contact section of this website to learn more. If you are a beneficial owner, the sale / assignment of your rights is not within the purview of the liquidators and you should liaise directly with your custodian or nominee institution.
This FAQ section has been prepared solely for general information purposes. It is not intended to be, nor is it, legal advice. The liquidators do not provide any warranties in relation to the same. All parties should obtain their own legal advice in respect of their positions in the Fund. Please contact the contact person listed at the Contact section of this website should you have any questions.