ARM Asset Backed Securities S.A. (“ARM” or “The Company”)
Luxembourg 15 January 2013
The purpose of this statement is to provide the public with additional information following the announcement made by ARM on 16th November 2012 on the Irish Stock Exchange of the outright sale of the life settlement policies in ARM's portfolio to Financial Credit Investment I Limited (“FCIL”).
Further to our earlier communication in March 2012, we are not in a position to communicate with individual investors about their particular circumstances - the board is still in place and investors must still contact the board or management of ARM directly. However we can confirm that, in a letter dated 26th November 2012, Ernst & Young in its capacity as Supervisory Commissioner of ARM has instructed the board of directors of ARM to perform, inter alia, the following tasks:
- Prepare interim financial statements of the Company including the accounting for the FCIL transaction and determination of the resulting value of the outstanding bonds;
- Prepare individual statements of each bondholder’s situation after taking into account the result of the FCIL transaction.
We recognize that the preparation of such statements could take up to several weeks as the necessary underlying data is not directly in the possession of ARM.
We continue to carefully follow the situation of the “pending monies” and the related so-called “pending investors”. At present the UK Financial Services Authority (FSA) has placed a ‘freezing order’ on the funds until ownership can be finalised. The FSA have requested that ARM provide legal opinion supporting ARM’s stance that the monies belong to ARM. To date ARM have not supplied evidence of such legal opinion to either us or the FSA.
We have been informed by the board of ARM that they are currently working on different scenarios as to the future of the Company after the sale of the original investments, including potentially re-launching some unrelated Senior Life Settlement activity. Pursuant to applicable laws and incorporation documents the bondholders shall be consulted in due course on the scenario which will have been retained by the Board.
We also draw attention to the press release 12/50 issued by the Commission de Surveillance du Secteur Financier (CSSF) on 12th December 2012 regarding the outcome of the petition lodged by ARM with the Administrative Court of Luxembourg.
Until further notice we continue to exercise the mandate which has been entrusted to us by the Luxembourg Court with the aim of protecting the interest of the bondholders and other creditors of ARM.
Ernst & Young, Société Anonyme, represented by Jean-Michel Pacaud, Supervisory Commissioner to ARM