Deloitte to oversee Cheyne receivership
Structured investment vehicle calls in Big Four Firm after sub-prime market upheaval sends its investment portfolio into freefall
Deloitte has appointed Nick Edwards, Neville Kahn and Nick Dargan as
receivers of Cheyne Finance.
Because of its focus on the debt-buying market in the US, the value of the
structured investment vehicle’s investment portfolio has been battered by the
sub-prime turmoil in the US as borrowers have defaulted on loans.
The company, which specialises in buying debt, was forced to trigger an
enforcement
event on 28 August 2007 as the extent of its losses became apparent.
Cheyne said: ‘The appointment of a receiver is required under the terms of
the company’s Security Trust Deed following the occurrence of an Enforcement
Event. The appointment has been duly made by The Bank of New York as Security
Trustee.’
Neville Kahn said: ‘The receivers will familiarise themselves with the
company’s assets and liabilities, consider the strategy being put in place
following the occurrence of the Enforcement Event and monitor the management of
the company’s assets. We are working closely with Cheyne Capital Management,
the company’s investment manager. Once the receivers have reviewed the situation
they will provide more detail in respect of the timetable for the Company to
provide further information on the immediate strategy.’
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