REG - Highbridge Tactical - Company Update and Return of Capital Information

Highbridge Tactical Credit FundAnnouncement

16/03/2023 07:00

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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: 0203 530 3104

 

 

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

Tel: 0207 134 6220

LEI: 213800397SYHLYFH5961

E&OE - in transmission

 

 

 

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