Liquidation of the AllBlue Funds

RNS Number : 2427S

Highbridge Multi-Strategy Fd Ltd £

22 June 2018

 

HIGHBRIDGE MULTI-STRATEGY FUND LIMITED (the "Company")

Liquidation of the AllBlue Funds

The Company announces that it has received a further communication from the Manager of AllBlue Limited and AllBlue Leveraged Feeder Limited (together, the "AllBlue Funds") regarding the liquidation of the AllBlue Funds, the relevant sections of which are extracted below.

Until February 2016, the Company's investment objective was to invest substantially all of its assets into the AllBlue Funds. To date, the Company has received a total of £711.2 million and $42.6 million from the AllBlue Funds, representing approximately 99.44% of the value of the Company's investment in the Sterling classes of the AllBlue Funds and approximately 99.44 % of the value of its investment in the US$ classes of the AllBlue Funds. The Company currently remains a creditor of the AllBlue Funds of £4.2  million in aggregate.

In light of the communication mentioned above, the Board has resolved to approve, in principle, the payment of a further distribution and has engaged the Company's auditor to review the cash received by the Company from the AllBlue Funds prior to confirming the amount to be distributed. Accordingly, upon completion of the review, a further announcement is expected to be made in July confirming the amount and timescale for these payments.

The Board of the Company has also resolved that any distributions with a value of less than £5 (or US$ equivalent, as applicable), will not be paid to the relevant creditors and will instead be retained for the benefit of the Company, as the administrative cost  of making such small distributions would exceed the value of the distributable amounts.

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"To investors in: ALLBLUE LIMITED (the "Fund'')

Dear Investor,

We are writing to provide an update on the return of capital to holders of interests in the Fund ("Investors") and the proposed process for the Fund's formal liquidation.

Redemption Distributions

Approximately $6.1 bn has been returned to Investors since 1 January 2016, equating to total capital distributions of approximately 99% of the Fund's net value at 31 December 2015. The following table shows the distributions made since 1 January 2016:

Date of Distribution	Capital Distributed to Investors (nearest million)
1 Jan - 31 Dec 2016	$5,945m
1 Jan - 31 Dec 2017	$149m
W/c 28 May 2018	$29m
Total	$6,123m

lt is not expected that any further distributions will be made to Investors prior to the Fund's appointment of voluntary liquidators.

Liquidation of the Fund

At a meeting of the Fund's board of directors on 9 May 2018, the directors determined that it is in the best interests of the Fund to appoint two partners of Deloitte & Touche, Cayman Islands ("Deloitte") as joint voluntary liquidators to effect the liquidation of the Fund. Deloitte has significant specialist experience in managing fund liquidations in the Cayman Islands.

The Fund will retain a small residual cash holding (after deduction of accrued actual and contingent liabilities) at the time of being placed into liquidation, which will be held as a reserve for any third party expenses which may arise during the liquidation process. Any remaining balance will be returned to Investors at the conclusion of the liquidation process.

It is anticipated that the appointment of Deloitte will be effected in June/July 2018, at which point the formal liquidation process will commence. The length of the liquidation process will be contingent in part upon the corresponding liquidations of the underlying master funds in which the Fund remains ultimately invested (the "Master Funds"), each of which is also anticipated to commence its formal liquidation process at around the same time. A further update on each Master Fund is provided below.

SS&C GlobeOp will remain appointed as the Fund's administrator until its services are terminated by Deloitte.

 Deloitte will communicate with Investors in the near future to provide further details on its appointment, the liquidation process and future Investor communications.

BlueCrest

BlueCrest's appointment as investment manager of the Fund will be terminated upon the appointment of Deloitte although it will continue to assist Deloitte during the liquidation process as required. Any performance fees which have accrued prior to the appointment of Deloitte, or may accrue during the liquidation process, will be remitted to BlueCrest on the same terms as the existing arrangements; no management fees will be chargeable.

Master Fund Updates

The Fund has completely liquidated its holdings in the following four Master Funds: BlueCrest Emerging Markets Master Fund Limited, BlueCrest Equity Strategies Master Fund Limited, BlueCrest Quantitative Equity Master Fund Limited and BlueTrend 2x Leveraged Master Fund Limited.

The three Master Funds in which the Fund continues to hold investments are as follows:

BlueCrest Capital International Master Fund Limited - The fund has liquidated all of its trading assets (other than a small number of positions held at zero value) and holds a small residual cash balance after deduction of accrued actual and contingent liabilities. lt is anticipated that the fund will be placed into liquidation at a similar time to the Fund.

BlueCrest Multi Strategy Credit Master Fund Limited - The fund has liquidated all of its assets save for a fully funded bond position which was valued at approximately $23m at 31 May 2018 and is currently the subject of a tender offer process which is expected to conclude during June/July 2018. If the tender offer is unsuccessful, a sale will be sought in the secondary bond market by BlueCrest or Deloitte, as applicable. In addition, the fund holds a residual cash balance after deduction of accrued actual and contingent liabilities. lt is anticipated that the master fund will be placed into liquidation at a similar time to the Fund.

BlueCrest Mercantile Master Fund Limited - The fund has liquidated all of its trading assets and holds a small residual cash balance after deduction of accrued actual and contingent liabilities. lt is anticipated that the fund will be placed into liquidation at a similar time to the Fund."

"To investors in: ALLBLUE LEVERAGED FEEDER LIMITED (the "Fund'')

Dear Investor,

Return of Capital and Liquidation of All Blue Leveraged Feeder Limited

We are writing to provide an update on the return of capital to holders of interests in the Fund ("Investors") and the proposed process for the Fund's formal liquidation.

Redemption Distributions

Approximately $2.47bn has been distributed by the Fund since 1 January 2016, of which approximately $1.25bn has been repaid to the Fund's leverage providers in satisfaction of the leverage facilities and approximately $1.22bn has been distributed to Investors. This equates to total capital distributions of approximately 99% of the Fund's Net Value at 31 December 2015.

The following table shows the distributions made to Investors since 1 January 2016 (excluding amounts repaid to leverage providers):

Date of Distribution	Capital Distributed to Investors (nearest million)
1 Jan - 31 Dec 2016	$1,144m
1 Jan - 31 Dec 2017	$63m
W/c 28 May 2018	$12m
Total	$1,219m

lt is not expected that any further distributions will be made to Investors prior to the Fund's appointment of voluntary liquidators.

Liquidation of the Fund

At a meeting of the Fund's board of directors on 9 May 2018, the directors determined that it is in the best interests of the Fund to appoint two partners of Deloitte & Touche, Cayman Islands ("Deloitte") as joint voluntary liquidators to effect the liquidation of the Fund. Deloitte has significant specialist experience in managing fund liquidations in the Cayman Islands.

The Fund will retain a small residual cash holding (after deduction of accrued actual and contingent liabilities) at the time of being placed into liquidation, which will be held as a reserve for any third party expenses which may arise during the liquidation process. Any remaining balance will be returned to Investors at the conclusion of the liquidation process.

lt is anticipated that the appointment of Deloitte will be effected in June/July 2018, at which point the formal liquidation process will commence. The length of the liquidation process will be contingent in part upon the corresponding liquidations of the underlying master funds in which the Fund remains ultimately invested (the "Master Funds"), each of which is also anticipated to commence its formal liquidation process at around the same time. A further update on each Master Fund is provided below.

SS&C GlobeOp will remain appointed as the Fund's administrator until its services are terminated by Deloitte.

Deloitte will communicate with Investors in the near future to provide further details on its appointment, the liquidation process and future Investor communications.

BlueCrest

BlueCrest's appointment as investment manager of the Fund will be terminated upon the appointment of Deloitte although it will continue to assist Deloitte during the liquidation process as required. Any performance fees which have accrued prior to the appointment of Deloitte, or may accrue during the liquidation process, will be remitted to BlueCrest on the same terms as the existing arrangements; no management fees will be chargeable.

Master Fund Updates

The Fund has completely liquidated its holdings in the following four Master Funds: BlueCrest Emerging Markets Master Fund Limited, BlueCrest Equity Strategies Master Fund Limited, BlueCrest Quantitative Equity Master Fund Limited and BlueTrend 2x Leveraged Master Fund Limited.

The three Master Funds in which the Fund continues to hold investments are as follows:

BlueCrest Capital International Master Fund Limited - The fund has liquidated all of its trading assets (other than a small number of positions held at zero value) and holds a small residual cash balance after deduction of accrued actual and contingent liabilities. lt is anticipated that the fund will be placed into liquidation at a similar time to the Fund.

BlueCrest Multi Strategy Credit Master Fund Limited - The fund has liquidated all of its assets save for a fully funded bond position which was valued at approximately $23m at 31 May 2018 and is currently the subject of a tender offer process which is expected to conclude during June/July 2018. If the tender offer is unsuccessful, a sale will be sought in the secondary bond market by BlueCrest or Deloitte, as applicable. In addition, the fund holds a residual cash balance after deduction of accrued actual and contingent liabilities. lt is anticipated that the master fund will be placed into liquidation at a similar time to the Fund.

BlueCrest Mercantile Master Fund Limited- The fund has liquidated all of its trading assets and holds a small residual cash balance after deduction of accrued actual and contingent liabilities. lt is anticipated that the fund will be placed into liquidation at a similar time to the Fund."

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For further information about this announcement contact:

JTC Fund Solutions (Guernsey) Limited Secretary

Tel: [phone]

E&OE - in transmission

 

END

 

 

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