REG - Alternative Liqdty - Portfolio Update

Alternative Liquidity FundAnnouncement

03/07/2025 09:45

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RNS Number : 6117P  Alternative Liquidity Fund Limited  03 July 2025

ALTERNATIVE LIQUIDITY FUND LIMITED

Registered in Guernsey - Number 60552

LEI NUMBER 213800R5CHD76J3LU713

 

Registered Office:

1 Royal Plaza, Royal Avenue,

St Peter Port, Guernsey, GY1 2HL

 

3 July 2025

PORTFOLIO UPDATE

The Board and the Investment Adviser have received a positive update from
Vision Brazil with regard to the FCVS RJ Fund. As previously communicated in
the 2024 interim accounts and recent fact sheets, Vision and their advisers
have been negotiating the FCVS RJ credits through the government system and
have achieved some success. Over 80% of the credits in the portfolio which
were approved by Caixa and officially handed over to the Treasury have now
been novated. Having signed a novation contract with the Treasury, the related
cash and bonds have been deposited into the V3 FIDC securities account.

A further tranche remains under review by the Treasury, and this may
transition through to novation in the next several months.

With respect to the first novated tranche, Vision will now work with tax
lawyers, service providers and the independent directors to determine and
execute the following:

-      the fiscal deductions that need to be settled in Brazil;

-      the distribution waterfall approval;

-      directors' resolution approval;

-      execution of FIDC amortization;

-      execution of FX transaction;

-      transfer of funds among intermediate offshore vehicles; and

-      sending notice of redemption to the Cayman administrator
(Suntera); and

-      Finally the joint authorization from Vision and Suntera for
payment on behalf of each investor.

Vision estimates that the above steps will take approximately one month to
complete. With respect to the waterfall of payments, we expect the V Invest RJ
Loan to be settled in full first (ALF's share being circa US$2.67mlm),
followed by the repayment of the recent US$3mln recapitalisation loan. The
balance will then be distributed to all shareholders.

ALF owns 21.5% of the Vision RJ Fund and using an approximate estimate for the
expected deductions that are listed above, we anticipate that ALF should
receive a figure roughly equivalent to Vision's March 31, NAV for the RJ Fund.
This was US$14.88mln.

We would like to re-iterate that this recovery estimate is an indicative
guideline only. At this point we do not have accurate data with respect to the
deductions listed above. Consequently, the recovery number could increase or
decrease.

Based on the estimated timeline received from Vision, it is possible that this
exercise could be completed prior to the end of August, however, accurate
timing is difficult to ascertain at this point.

Once funds have been received, the Board will determine the appropriate amount
of cash to be distributed through redeemable B shares. The Board will also
take soundings from shareholders with a view to making recommendations with
respect to the remaining assets in the portfolio.

Enquiries

 

Tim Gardner, Hindsight Solutions Limited

Tel. +44 7917 630 460

Email: timgardner@hindsightsolutions.co.uk
(mailto:timgardner@hindsightsolutions.co.uk)

Website:  (https://waranacap.com/)  https://alternativeliquidityfund.com/
(https://alternativeliquidityfund.com/)

 

 

Apex Fund and Corporate Services (Guernsey) Limited

Telephone: +44 (0) 20 3530 3111

 

 

 

 

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