ARM Asset Backed Securities looks to wind up; liquidators appointed

By Caroline Salls

Pittsburgh, Oct. 15 - ARM Asset Backed Securities SA and its directors filed a petition for winding up of the company with the High Court of Justice Chancery Division, Companies Court, according to a court order.

Mark James Shaw and Malcolm Cohen, both of BDO LLP, were appointed as the company's joint provisional liquidators.

According to information released on Oct. 4 by the Financial Conduct Authority (FCA), the Luxembourg financial services regulator refused to grant a license to ARM in August 2011.

ARM appealed the decision in September 2011 and brought a petition to the Luxembourg Court on Nov. 29, 2011 to get a judicial review of the decision.

The court rejected ARM's petition, and a subsequent appeal was dismissed on Aug. 21, prompting the company's placement into liquidation.

The FCA said it took action in 2011 to prevent the release of pending investors' money.

On Nov. 14, 2012, ARM issued a statement announcing the sale of the life settlement policies in its portfolio to Financial Credit Investment I Ltd.

In addition, the FCA said it declared ARM's U.K. distributor Catalyst Investment Group Ltd. in default on Oct. 3, meaning there are protected claims outstanding against Catalyst that it is unable or unlikely to be able to meet.

ARM is a securitization vehicle based in Luxembourg.

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