Subprime-stung Australian hedge fund manager Basis Capital Fund Management is seeking a court’s help to sort out its mess.
The Sydney-based firm said it will ask an Australian court to appoint representatives for each class of investor in its Yield Fund and Aust-Rim Diversified Fund, both of which suffered enormous losses last year linked to the subprime and credit crises. The firm was forced to suspend redemptions, and its flagship Yield Alpha Fund is already in liquidation proceedings around the globe.
“Basis Capital will be seeking a declaration from the court regarding the appropriate treatment of June redemptions from and applications to the two funds to make sure that any action taken is in accordance with the rights and entitlements of all investors,” the firm said in a statement.
Basis is consulting with the Investment and Financial Services Association to find suitable representatives.
“Identifying appropriate representatives of the various classes of investors and obtaining their consent has been a time-consuming process,” the firm said. “Basis Capital and its legal advisers have been working hard to identify and reach an expeditious outcome with interested parties and have kept the regulator informed of the progress.”