Company name ARM Asset-Backed Sec
Headline Corporate Restructure Process

RNS Number : 1619R
ARM Asset-Backed Securities S.A.
14 November 2012

ARM Asset Backed Securities S.A.


14 November 2012

ARM Asset Backed Securities S.A. (ARM)

Corporate Restructure Process:


ARM, the Appraisal Committee and its advisors announced today the outright sale of the life settlement policies in ARM's portfolio to Financial Credit Investment I Limited ("FCIL") for a fixed amount of cash, some of which shall be paid upfront and the balance to be paid over a period of time.  The corporate restructure process which was initiated by the Board of ARM in last January following it being placed under supervision by the Luxembourg financial services regulator (CSSF) has now come to a crucial point in time. The Company has at all times been mindful that any action taken must be in the long term best interests of the Bondholders. To this end in establishing a restructure strategy:

       The initial outstanding issue was the de-risking of the current portfolio that was degrading rapidly as value was eroding while it supported premiums, operating and legal costs. As it stood the value of the portfolio was greater than the sum of its parts and any further sale of policies in small lots would have precipitously eroded underlying value for Bondholders.

The first part of the restructure strategy, de-risking of the portfolio, has now been achieved and ARM confirms that the formal tender process regarding the restructuring of the Fund that commenced in March of this year has now come to an end.  In response to our request the board received a number of bids.  A few of the bids were not credible and they were rejected.  The remaining bids were reviewed by the board as well as by E&Y.  In the end the board reached unanimous consensus that the cash bid presented by FCIL was the bid that would achieve the most favourable outcome for our investors.  Due diligence was done on FCIL, including a number of face to face meetings.  In summary the transaction with FCIL requires the outright sale of the life settlement policies in the portfolio in return for a fixed amount of cash, some paid upfront and the balance to be paid over time.  On Nov 2, 2012, a Purchase and Sale Agreement was signed with this bidder.  E&Y as supervisory commissioner has consented to the sale, and both the CSSF and the FSA were advised of the sale. We are now working on the settlement of this transaction, which so far is proceeding in an orderly way

       Further, ARM is now considering several options as to the future of the Company, including the modelling of a comprehensive restructure. If and when a satisfactory option materializes it would obviously be submitted to all the approvals as required by applicable laws, regulations and other legal requirements.

       The Board is actively perusing a resolution of the 'pending monies' issue. It is hoped that extensive legal proceedings can be avoided.


A further more detailed update will be posted at the earliest opportunity.

            For all enquiries: Catalyst Investment Group



This announcement has been issued through the Companies Announcement Service of

The Irish Stock Exchange.




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