BusinessCompany NewsE&Y on standby as Sigma receiver

E&Y on standby as Sigma receiver

E&Y is on standby as receiver to Sigma, but firesale unlikely

Ernst
& Young
is on standby to act as receiver to Sigma Finance, the collapsed
$27bn structured investment vehicle run by
Gordian Knot Ltd,
although it is unclear when the appointment could be made, Financial
Times
reports.

Sigma ceased trading Wednesday after JPMorgan declared a default on its
funding line. The cost of the collapse was revealed when Zurich Financial
Services announced yesterday a write-down of $275m resulting from its default.

Although the collapse debt vehicle is unlikely to trigger a fire-sale of
assets, creditors of the structured investment vehicle face heavy losses,
analysts told
Reuters.

‘Both Gordian and Sigma are taking all necessary steps to ensure that the
interests of all creditors of Sigma are safeguarded, a Sigma statement said.
‘Sigma will not be making any payments to counterparties during this period.’

Further reading:

Sigma SIV still solvent says Gordian Knot

Read
the Financial Times story

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