Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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
Play Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: from Batman Live to commodity beta

Profile: from Batman Live to commodity beta

Charteris may be a family affair, but the company is not at any risk of turning sentimental

Wealth Manager on Twitter