Company Update and Return of Capital Information

RNS Number : 1340T

Highbridge Tactical Credit Fund Ltd

16 March 2023

 

Highbridge Tactical Credit Fund Limited

(the "Company")

Registration No. 44704

LEI: 213800397SYHLYFH5961

Registered Office:
1 ROYAL PLAZA, ROYAL AVENUE, ST PETER PORT,
GUERNSEY, GY1 2HL

Notice of a redemption, a distribution and Company update

On the basis that the Company has recently received final distributions from Highbridge Multi Strategy Master Fund and Highbridge Tactical Credit Master Fund, the Board is pleased to inform shareholders of a compulsory redemption of the majority of the outstanding shares.  The compulsory redemption will be made at the most recently published NAV (December 2022) £2.6368 per share and approximately 95% of each shareholders' shares (rounded down) will be redeemed.  Full details, including relevant dates and the ISIN number for the remaining shares will be announced early next week.

The company will also pay 2.24p per share in respect of the 2019 Exit creditors, and again full details of this distribution will be given early next week.

The Board has decided not to make any payment to the original 2016 Exit creditors since the amount of cash available to those creditors is not sufficient to make such a payment economically viable.

After the payments referred to above, the only remaining assets in the Company will be minimal cash balances and a residual interest in the AllBlue Funds, which are in liquidation. There remains an inherent uncertainty as to how much if anything, the Company will receive from that residual interest. By way of update the date the appeal made by BlueCrest against the fine of circa £40 million levied against BlueCrest is not yet known, as is the likely outcome of that appeal. 

The most recent published NAV of the Company reflects the most recent information from the liquidators of the AllBlue Funds which is as at July 2018.  This information does not take into account any potential benefit from the FCA dispute or from any other legal claims.  The Liquidators have tried to sell the only remaining tangible asset of the AllBlue Funds on two occasions without success.  However, in the event that the AllBlue Liquidators are able to make distributions in the future, the Company will allocate such distributions as follows:

Current Tactical Credit Fund shareholders: 5.5%

2019 Exit creditors: 21.00%

2016 Exit creditors: 73.50%

The Board has decided that it is no longer of any value to produce quarterly NAVs, on the basis that the Company is only holding cash and an interest in the AllBlue Funds, with an uncertain carrying value.  Therefore, the 30 December 2022 is the final NAV to be produced by the Company.

The Board has decided to delay placing the Company into liquidation and thus retaining the Company's listing on the London Stock Exchange until October 2023 so that any distributions received from AllBlue prior to that date can be swiftly passed to the Company's current and former shareholders as appropriate, without the need to request fresh AML documentation from all current and former investors.

However, the board is exploring the possibility of issuing a new share class that would raise capital to pursue a new investment strategy which would be managed by Highbridge. The new share class would not share in the existing portfolio assets and would be completely separate from the Company's remaining assets, thus the new share class would not have any exposure to the Company's residual interest in the AllBlue Funds. If that opportunity comes to fruition a Liquidator would not need to be appointed and the Company could continue to be listed. A New Share Class has the advantage of the Company continuing to be listed and avoiding the need to seek additional AML documentation from shareholders and creditors and the costs of running the company could be shared on a pro-rata basis with the New Share Class.

Enquiries:

Sanne Fund Services (Guernsey) Limited

Company Secretary

Tel: [phone]

Katie Standley, J.P. Morgan Asset Management (UK)

Tel: [phone]

LEI: 213800397SYHLYFH5961

E&OE - in transmission

 

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