The receivers of SIV Portfolio Plc (formerly Cheyne Finance Plc) (the Company), Neville Kahn, Nick Edwards and Nick Dargan of Deloitte (the Receivers), have today announced that the Company and the Receivers have entered into a restructuring agreement and a portfolio sale agreement, each with Goldman Sachs International (GSI). 

Under the Portfolio Sale Agreement, the Company has agreed to sell a portion of the portfolio of debt securities held by the Company to GSI, subject to the satisfaction of certain conditions precedent.

Under the terms of the Restructuring Agreement, the Company has agreed, on specified terms and subject to certain conditions, to sell the remaining Portfolio Securities which are not being sold to GSI, pursuant to an auction process involving certain market participants which will be invited to submit bids for the purchase of such Portfolio Securities.

Neville Kahn, Receiver and Partner at Deloitte, commented: “We are very pleased to have signed this agreement. The next stage is to complete the restructuring through the sale of the portfolio by competitive auction with a number of alternative bidders, which we expect to happen on or around 17 July with settlement shortly thereafter.

“This has been a complicated process. Achieving this agreement is the result of a great team effort by a significant number of my colleagues from across our restructuring, debt advisory and securitisation teams. All in all, we have over 30 people dedicated to the restructuring of this and a number of other SIVs.”

Following completion of the sales of the Portfolio Securities to the Alternative Bidders and GSI, the Receivers will distribute the net cash proceeds received from the Sales in accordance with the terms of the Security Trust Deed dated August 3, 2005.  The Receivers do not anticipate that such net cash proceeds will be sufficient to allow any payment to be made to the holders of the Capital Notes or to any other party which is subordinate to the Senior Creditors in the Payment Priority set out in the Security Trust Deed.