June liquidation for beleagured Amerindo trust

Amerindo Internet Trust is set to be liquidated in June, a year after its US-based managers were arrested for fraud.

Since announcing plans to run down the vehicle, the directors have been selling off assets, returning £18.2m to shareholders through realising the quoted portion and £3.6m via the unquoted.

The trust sold its entire unquoted portfolio to funds managed by Saints Capital and Willowridge in March.

Following these realisations, the company quoted a residual net asset value of 1.63p per share last week, not taking account of wind up costs. Subject to approval at an EGM on 21 June, it will wind up and the remaining cash be distributed to shareholders on a pro-rata basis.

Under the proposals, the company will be wound up on that date, with Deloitte & Touche LLP appointed as liquidators. They will set aside sufficient assets to meet liabilities, including the costs of the proposals, estimated to amount to around £400,000.

One of the most high-profile vehicles of the tech-boom era, taking £400m of assets on launch in 2000, manager Alberto Vilar was arrested last year on charges of taking $5m from an investor.

His co-founder of Amerindo Investment Advisors (AIA), Gary Tanaka, was also arrested on fraud charges and the two are currently awaiting trial.

Meanwhile, the vehicle also lost its investment trust status because managers failed to reinvest monies held for the account of the trust immediately, which caused it to violate tax rules. This led to a loss of tax privileges, including exemption from tax on realised investments.

Categories: Investment | Equities

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