The receiver for hedge fund Cheyne Capital’s structured investment vehicle, which defaulted on its debts last week, has struck a deal with the Royal Bank of Scotland Group.

The receiver, Deloitte & Touche, said RBS will set up a new vehicle which will buy Cheyne Finance’s $7.2 billion in assets. “The action follows detailed discussions with a number of different bidders over the past few weeks and after consultation with the informal creditors’ committee,” Deloitte, appointed last month by Cheyne Capital, said in a statement.

Earlier reports indicated that Deloitte was in talks with three banks, including RBS and Goldman Sachs, and that it was possible the SIV, which has $7.3 billion in outstanding debt, could remain in business.

The new RBS vehicle is to be financed both by new and existing investors. It will liquidate Cheyne Finance’s positions over time.

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