For immediate release
14 July 2017
SIGMA FINANCE CORPORATION (IN RECEIVERSHIP)
The receivers of Sigma Finance Corporation (in receivership) ("Sigma" or the "Company") being A. R. Bloom, M. E. Mills and S. J. Harris of Ernst & Young LLP (the "Receivers") wish to provide an update to Beneficiaries.
Capitalised terms used in this announcement and not otherwise defined have the meanings given to them in the Amended and Restated Security Trust Deed dated 27 March 2003 (the "Security Trust Deed").
Update and next steps
During the last year, certain Assets of the Company which were held subject to an escrow arrangement with a market participant have been released to the Company. Following this release and as previously announced, the Receivers do not now anticipate recovering any further Assets for the benefit of Beneficiaries.
In these circumstances, the Receivers, in consultation with the Security Trustee, will be considering how the Company and its affairs may best be wound down in an orderly fashion so as to bring finality for Beneficiaries. The Receivers will be consulting with various stakeholders in this regard to conclude the receivership and draw an end to the Company's affairs. The Receivers cannot specify at this stage how long this process will take, although their intention is that this is completed by 2020.
In the meantime, the Receivers, in consultation with the Security Trustee, hereby notify Beneficiaries that they intend to make a further distribution to Beneficiaries during the Autumn of 2017 using the methodology set out in the Security Trust Deed.
As announced previously, in accordance with an Order of the English High Court dated 28 July 2010, the Receivers established Pools on 8 November 2010 relating to the Company's liabilities pursuant to the Security Trust Deed. The Receivers will allocate Sigma's Assets to such Pools in the manner set out in the Security Trust Deed and the pooling and distribution methodology dated 22 June 2010, which was previously made available to Beneficiaries and a copy of which has been posted by the Receivers on the website maintained by Sigma at:
It is anticipated that the aggregate U.S. dollar equivalent amount of the Company's Assets that will be allocated to the Pools for the purposes of this distribution will be an amount equal to approximately US$17 million. Further detail surrounding this distribution will be made available in due course. This will leave a comparatively small amount of Assets in the Company in an amount equal to approximately US$6 million which, after payment of costs and any prior ranking claims, the Receivers anticipate will be paid to Beneficiaries at the end of the process by which the Company's affairs are wound down and the receivership brought to a close.
Please email email@example.com if you have any queries regarding this announcement.
Please note that nothing in this document is intended to amount to an invitation or inducement to engage in investment activity. Nothing in this document amounts to the giving of advice. If you are in any doubt as to the action you should take, you should consult a professional adviser.
The Receivers act as agents of the Company and without personal liability.