For immediate release
13 May 2015
SIGMA FINANCE CORPORATION (IN RECEIVERSHIP)
The receivers of Sigma Finance Corporation (in receivership) ("Sigma") being A. R. Bloom, M. E. Mills and S. J. Harris of Ernst & Young LLP (the "Receivers") have today made the following announcement. 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").
Intention to make second distribution
The Receivers hereby notify Beneficiaries that they intend to make a second distribution to Beneficiaries on or about 2 July 2015 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 Sigma's liabilities pursuant to the Security Trust Deed and 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:
The aggregate U.S. dollar equivalent amount of Sigma's Assets that it is intended will be allocated to the Pools for the purposes of the second distribution will be an amount equal to US$60 million. It is contemplated that details of the amount which is intended to be allocated to each Pool will be made available on the website referred to above in the final week of June and a separate notification of this will be made to the Beneficiaries. The second distribution will then be made using the Assets allocated to each Pool.
Following such distribution, the Receivers expect either to hold or have access to funds of approximately US$23 million (converted, where relevant, into US dollars at appropriate FX rates). It is not possible at this stage to provide any certainty on when a final distribution will be made.
Please email email@example.com if you have any queries regarding this announcement.
Notice of waiver of account bank rating requirement
For the purposes of the Pools, the Security Trust Deed requires the Security Trustee to open and maintain bank accounts with a bank or other financial institution in the United Kingdom or the United States of America whose short-term unsecured, unsubordinated debt is rated A-1 by S&P, P-1 by Moody's and F1 by Fitch or which is otherwise acceptable to each of the Rating Agencies.
In accordance with this requirement, accounts have been opened in the name of Sigma, acting through its Receivers, at Deutsche Bank AG, London branch (the "Account Bank"). The Account Bank no longer satisfies one of such ratings, having a short term rating by Moody's of P-2. Given that the Notes are no longer rated and the costs associated with moving the accounts and creating the appropriate security interests, the Security Trustee and Sigma have agreed that the relevant accounts shall be retained for the time being with the Account Bank notwithstanding such downgrade and the Security Trustee has provided a revocable waiver of any breach by Sigma of an obligation under the Security Trust Deed in respect of such downgrade.
If any Beneficiary has any concerns about the approach adopted in respect of this downgrade, please contact the Receivers using the email address firstname.lastname@example.org.
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 Sigma and without personal liability.