Alternative Vision Fund Special Announcement
Alternative Vision Fund Limited Shareholder update
19 January 2012
In November 2011 an Investor report was distributed by Alternative Asset Management Limited, in relation to developments surrounding MF Global Holdings Limited ("MFG"). This report was prepared for the purpose of providing an update to shareholders, in relation to new developments with regards to MFG.
Subsequent to this, on the 9 January 2011 at 11am a creditors' meeting was held at Barbican Centre, Silk Street, London, EC2Y 8DS to discuss various proposals set out by the Special Administrators of MF Global UK Limited (Richard Fleming, Richard Heis and Mike Pink of KPMG LLP). The proposal statement made by the Special Administrators is described in the following link:
http://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/Pages/mf-global-uk-proposals-initial-meeting-creditors-clients.aspx
Over 800 representatives of creditors and clients attended the creditor's meeting and voted overwhelmingly in favour of the Joint Special Administrators' proposals. As a result joint special administrator Richard Heis made a statement that both clients and creditors had voted overwhelmingly in favour of their proposals, which included the expectation that they will be able to make an interim distribution of client monies within the next few weeks.
Client Assets statement made by Richard Heis
As at the 9 January 2012, the Special Administrators have recovered the majority of the US$100 million segregated client assets to distribute to the clients of MFG UK and have now analysed the validity of claims against 96% by market value of those client assets. Where ownership is relatively clear, the Special Administrators are in discussion with clients in relation to the return of these assets, representing approximately US$30 million of client assets. The administrators expect to conclude these discussions in the next two weeks, after which they are likely to announce a bar date.
As the Alternative Vision Fund Limited held a UK segregated account and taking into account the above news, Whitmill Fund Administration Limited as administrators to the fund, deemed it necessary to make this information known to all shareholders.
Client Monies statement made by Richard Heis
As at the 9 January 2012, the Special Administrators have recovered £594 million, representing 82% of the Company's client money balances. The remainder of the monies are largely held by affiliates in particular MF Global Inc.
The Special Administrators propose to update and consult with the court in the week ending 3 February and expect to make an interim distribution shortly thereafter.
Conclusion
As a result of the above information, published by the Special Administrators, it is expected that an interim distribution will take place early February 2012 or thereafter the court decision to approve the release of funds to clients in relation to UK segregated accounts. The Alternative Vision Fund Limited held a UK segregated account and was 100% invested in cash prior to the liquidation, so we expect to receive an interim payment in February 2012. At this stage, we do not have information as to what percentage this interim payment will represent in total of the balance held with MF Global as at 31 October 2011, but nevertheless the Special Administrator has stated they can account for 82% of clients funds and intend to make another payment for the difference after the client claims process deadline in March 2012.
Once these two distributions by the Special Administrator have been made, any difference not paid to the Fund would then be legally categorised as a creditor under the proposals agreed at the meeting and we expect further news with regards to the process of claiming funds as a creditor in due course.
If you require any further information then please visit the KPMG website on the below link:
http://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/Pages/mfglobaluk.aspx