Close Enhanced Commodities
Close Enhanced Commodities Maturity 24th February 2010
Close Enhanced Commodities is due to mature on the 24th February 2010 and where investors hold the share certificate you will have received some investor information and a request to vote. The recommendation by Close and by ourselves is to vote in favour of the proposal to wind the investment up on the 24th February 2010 as was originally planned, but to also set up a separate trust to lodge a claim against Glitnir Bank (Icelandic Bank) who are in receivership.
Close invested the cash in several banks for the five year period and unfortunately Glitnir was one of them. Close invested around 19% of the funds with Glitnir (approx £6.74 million) and it is not known whether any value on this proportion can be realised. By setting up a trust to lodge the claim against Glitnir this would allow investors to receive further capital back should Glitnir be able to make a payment. Due to the 200% upside of the investment, Close have lodged a claim for £17 million which equates to around 48 pence per share. However, it is not expected that any monies will result from the claim for some time.
Another option is to hold the claim after redemption of the shares until February 2011, which would mean that investors would not receive anything for another year. In our opinion it makes sense to accept the proposal of settlement at maturity this year and to set up the trust with the claim against Glitnir.
Elaine