Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

CQS Rig Finance trust faces liquidation

1 Comment
CQS Rig Finance trust faces liquidation

A majority of investors in the CQS Rig Finance fund have confirmed they wish to wind up the trust.

The closed-end investment company focuses on debt issued to finance the construction and refurbishment of the offshore infrastructure used by the oil and gas industry.

The trust raised £50 million when it floated in 2006, targeting investors seeking an uncorrelated income stream and an 8% yield, but its net asset value now is just £35 million. Its share price has dropped from £1 at launch to 34p.

The fund was hit hardest during the credit crunch, when the oil price fell and with it demand and day rates for rigs. Several of the companies CQS had lent money to filed for bankruptcy.

The board of the trust has now revealed that its largest shareholders – three firms within the CQS group that together own two-thirds of the fund – have indicated that they will support a voluntary liquidation.

‘Accordingly the board will be making arrangements to convene an extraordinary general meeting of shareholders to consider proposals to cancel its admission to trading on AIM, to place the company into members’ voluntary liquidation and thereafter to realise the company’s assets and facilitate the return of available cash to shareholders,’ the board told the stock market.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
When Brewin's Gutteridge met BlackRock's easy Rieder

When Brewin's Gutteridge met BlackRock's easy Rieder

Following Federal Reserve chair Janet Yellen’s testimony, Ben Gutteridge, head of fund research at Brewin Dolphin, grills Rick Rieder, CIO of fundamental fixed income at BlackRock.

Play Sam Vecht: the best opportunities in frontier markets

Sam Vecht: the best opportunities in frontier markets

Blackrock's Vecht evaluates frontier markets and explains where he sees the opportunities

Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

Your Business: Cover Star Club

Profile: meet the man building Towry into an £11bn giant

Profile: meet the man building Towry into an £11bn giant

As a former engineer who worked on Hong Kong International Airport, Rob Devey is not afraid of taking on major projects

Wealth Manager on Twitter