News
Fund Management Company waived GILD Arbitrage’s fees in total of EUR 1.3 m
As a result of the successful bond issue concluded last week the fund management company of Risk Capital Fund GILD Arbitrage, AS GILD Fund Management, decided to waive all the fees since October 2008 until the beginning of August 2009. According to the rules of the Fund, the fund management fees have been calculated, but not paid in that period. Considering that the total fees in the stated period correspond to the total amount of success fees paid to the fund management company in 2008, by waiving all these fees fund management company returns the success fees for the previous year in the amount of 1.3 million EUR (20 million EEK) to the Fund.
Tõnno Vähk, Fund Manager of GILD Arbitrage, says that waiving fees is part of the successful bond issue: „Fund management company has not collected any fees from the Fund since August 2008 and therefore financed all activities in that period from own resources. We have now agreed in the bond terms upon the cost based fee structure since the beginning of August 2009 that will enable the fund manager to finance all the necessary the work. Taking into account the waiving of fees in the amount of EUR 1.3 million, the management costs of the Fund will considerably surpass the fees that have been actually paid from the Fund since the beginning of 2008 until today. In addition to that GILD Group, its shareholders and employees invested last year in the fund ca 50 million EEK (3.2 million EUR) at the highest levels of the fund unit`s historic net asset value. GILD has invested into the Fund more than the entire profit from the Fund since inception in 2001 and is today the largest investor of GILD Arbitrage, owning ca 9% of all fund units. Thus our only goal is to pay back the debts of the Fund and restore the value of fund units".
Last week the bond issue directed to the creditors of GILD Arbitrage was successfully completed, marking the successful conclusion of the restructuring of fund's loan obligations. As a result of the issue 99% of claims against GILD Arbitrage were converted to three-year bonds. Fund continues the work with investments and make preparations for the general meeting of fund unit holders that is planned to be assembled in October.
For further information, please contact:
Kadri Kütt
Communication Manager
GILD Bankers
+372 56 800 467
kadri.kytt(at)gildbankers.com