Helix Updates Market

Hamilton, Bermuda – May 22, 2018 – In a filing with the Bermuda Stock Exchange (“BSX”) Helix Investment Management SLP updates market. The full filing stated:

This release provides an update to all noteholders of the Issuer and summarizes a circular posted today to Helix’s secure site at www.fundnav.lu for access by noteholders.

Helix continues its recovery action for its loans against Privilege Wealth PLC (the “Company”) and has exercised its rights over collateral that it holds in security.

This update comes later than indicated owing to recent developments in our action for enforcement of our security rights over assets in the USA which were filed in the United States District Court, Middle District of Florida, Tampa Division and potential settlement discussions, which would have impacted this update. 

Our settlement requirements have not been met and no arrangement has been reached at this stage. We are however pleased to report that an entry of default has been entered against the US subsidiary of Privilege Wealth PLC, which now allows Helix to move for default judgement against that defendant.  The Court has duly entered its Case Management and Scheduling Order and a mediation has been now set for 18 July 2018.  The mediation is a forum for formal settlement negotiations, and which may expedite the process.

Helix continues its negotiation with the Joint Administrators of Privilege Wealth PLC in their proposal to co-operate in the recovery of certain assets of the Company.

Tranche B Redemptions

As re-iterated in our circular of 31 March 2018 should there be significant redemption requests from the Tranche B Noteholders such that it would be necessary to dispose of assets of the Issuer to meet such redemption requests and such disposal is not or would not be reasonably practicable or would be substantially prejudicial to any of the Noteholders, then in accordance with Section 8 of the Private Investment Memorandum as amended, it may be necessary for Helix to suspend redemptions and redemption requests, in whole or in part and in respect of any redemption date prior to maturity.  

Coupon payments

The Issuer’s ability to pay the coupons due on 30 June 2018 on the Tranche A and Tranche B Notes is dependent upon recoveries under its security interests and or reaching a settlement arrangement prior to the coupon payment date.

Helix considers that in the above circumstances it is appropriate to continue to suspend the trading of the Notes pending clarification of the fair value of the Notes.

Next Update

Helix will report back to all noteholders with a report setting our plan of action and a definitive position regarding redemptions and coupon payment on or about 25 June 2018 based upon the amount of the redemption requests received and the status of our recovery efforts as at that date.