However, Trinkwon noted, there was a 2.9% payment to Run-Off shareholders in October 2014 and an optional 5% redemption payment to requesting continuing shareholders in February 2015.
Trinkwon said that one consequence of the policy sale is a loss to the 80% majority of investors (including Run-Off investors) of an estimated $170m in future cash. This was in addition to the $150m of previous cash over-payments to various entities based on what appears to have been misrepresented valuations over the past ten years.
Open-ended loss
Medley Systems estimates that the total potential losses for investors in the Fund make this the biggest of the recent failures of Guernsey based investment Funds.
“EEA is believed to be the largest Open End Life Settlements Fund outside the USA,” Trinkwon said.
“This might not be the full extent of the catastrophe as future decisions to be taken by the EEA directors can’t be predicted at this stage,” he said.
