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Home > Investments > Alternative Investments

Arch Cru manager to extract £10m from funds by year end

SPL Guernesy also confirms that manager of Arch Cru Greek shipping investments to face fraud trial.

By Michael Trudeau and Ashley Wassall | Published Jul 17, 2012 | comments

SPL Guernsey, the manager of the Guernsey cells that make up the underlying investments in the failed Arch Cru funds, has announced plans to extract an extra £10m from the portfolios by the end of 2012 to return to shareholders.

In a chairman’s statement to shareholders in the funds, Mr Aldous cautions that after the potential £10m was extracted, where any remaining money would come from becomes more uncertain as the “remaining assets would inevitably be less liquid”.

He says: “Shareholders deserve the best return we can manage and we will do that, but whether all of that can be in cash, rather than some residual securities, we will have to see.”

Mr Aldous adds that Nicholas Koros and his sons, the co-owners and managers of the Greek shipping investments that have proved to be among the more controversial of the Arch Cru portfolio, have been referred to the Prosecutor in Greece at the company’s behest.

Mr Aldous confirms in the statement that Mr Koros and his sons will face a full trial for defrauding creditors. He would not provide any further comment.

The sale of the Nautical Ventures fleet of aging ships resulted in a further $179m (£146.2m) being invested in the Arch Cru funds.

Last week SPL launched its third litigation in relation to the Arch Cru funds, filing a claim in the Royal Court of the Island of Guernsey against the funds’ former administrator and three former directors for around £158m.

In April, SPL Guernsey filed a litigation against Robin Farrell, chief executive of Arch Financial Products, seeking up to £26.6m, which followed on from an earlier £150m claim against Arch Financial Products itself in December 2011.

The authorised corporate director of the Arch Cru funds, Capita, and depositories BNY Mellon and HSBC provided funding for a Financial Services Authority-brokered £54m redress package for investors in the funds last year.

Last week an all-party parliamentary group that is seeking an improved settlement for investors said it had garnered agreement from Capita to review the original deadline for acceptance of the offer, set at December this year.

This is due to the agreement by the FSA and other regulatory parties to participate in negotiations over an improved settlement and the announcement by the regulator that it has launched a consumer redress scheme to recover up to £100m from advisers that recommended the funds.

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