This is the latest media statement issued by the Malta Financial Services Authority [“MFSA”] updating the general public on the latest developments regarding ARM.
In its media statement of 30th September 2013 the Authority had announced that a decision of the Luxembourg regulator [CSSF] to refuse to grant a licence to ARM as a regulated securitisation undertaking under Luxembourg law is now final and cannot be appealed. Furthermore, the CSSF have asked the Luxembourg Courts to order the dissolution and the liquidation of ARM. The Luxembourg Courts were expected to appoint a supervisory judge, who would be in charge of the supervision of the liquidation of ARM, as well as one or more liquidators.
There have been some important developments since the media statement of the 30th September 2013. Although the outcome of such developments is as yet unclear, the MFSA would nonetheless like to update bondholders.
ARM has filed an application in the UK courts requesting that ARM be placed under voluntary arrangement and that a provisional liquidator be appointed in the UK. On 14th October 2013, the Company issued a notice to Bondholders informing investors that on 9th October 2013, Mark James Shaw and Malcolm Cohen of BDO LLP an auditing and professional consultancy firm were appointed as provisional liquidators of ARM by order of the High Court of Justice of England and Wales.
The provisional liquidators have the exclusive power to control and manage ARM’s affairs, and the powers of the Directors of ARM are suspended. The provisional liquidators are now assessing which assets belong to ARM and their value, as well as how much may be due to creditors.
The appointment of the provisional liquidators was made at the request of ARM on the following grounds that:
- it is just and equitable to do so;
- ARM is insolvent;
- ARM has ceased its business;
- ARM’s Centre of Main Interests is in the United Kingdom and that therefore the English court may open insolvency proceedings.
At this stage, bondholders do not need to register their interest or claim in the provisional liquidation. However, we would urge all bondholders to be vigilant and stay aware of any developments. At some point, bondholders may be invited to register their claims and bondholders will need to be ready to do so.
Given the recent developments in the UK, it is still unclear whether the process related to the dissolution and liquidation of ARM in Luxembourg will continue.
Bondholders are encouraged to refer to the following links for further information:
http://www.rns-pdf.londonstockexchange.com/rns/8933Q_-2013-10-18.pdf
http://www.rns-pdf.londonstockexchange.com/rns/5206Q_-2013-10-15.pdf
