On the 27 August 2015 application was made to the Royal Court by The Guernsey Financial Services Commission to wind up MVP Fund Range PCC (“the Fund”) under the Section 410 of The Companies (Guernsey) Law 2008 on the grounds that it is in the public interest.
The Commission felt it necessary to take these steps as it is concerned at the illiquid nature of the Fund and in light of the nature of the majority of investors in the Fund. In the absence of steps being taken by other parties the Commission considered it needed to act to protect the interest of investors especially and to do so by keeping the costs of resolution as low as possible.
The Fund resisted the application and sought an adjournment.
The Royal Court granted an adjournment in the following terms due to the Fund having only instructed their lawyers a day prior to the hearing.
THE COURT ORDERED that:
1. The Application be adjourned for a directions hearing on 16 September 2015 at 10.15am;
2. The Fund are to file and serve any material in response to the Application including any skeleton arguments by 4.00pm, 9 September 2015;
3. The costs of today be reserved;
4. The Fund and each of the cells of the Fund being the MVP Premium GBP Fund, the MVP Premium EUR Fund and the MVP Trade Finance Fund are prohibited from:
a. dealing with or disposing of any assets; or
b. making any investments or loans,
without the prior written agreement of the Commission. For the avoidance of doubt the term “assets” includes any investment portfolio and the balances of any bank accounts. For further avoidance of doubt this order extends to any action that would normally be taken by the directors, the designated manager or custodian of the Fund or any of the cells.
5. Liberty to apply.
The Royal Court considered that the action of the Commission in bringing proceedings under the Companies Law was understandable, but as parties that may be affected by the outcome, and upon hearing from Legal Counsel for the Fund, agreed to the adjournment as requested.