Creditors in the $7bn structured investment vehicle formerly known as Cheyne Finance are moving closer to a deal that would allow them to avoid being forced to realise hundreds of millions of dollars of potential losses in the short term, reports the Wall Street Journal, citing people familiar with the situation. The proposed deal would involve transferring the assets to a new vehicle, with senior creditors being offered the opportunity to refinance their debt into longer-term instruments or to take a discounted cash pay-out, the people said. The full structure of such a deal remains unclear, and one person said it was only one of the options being considered. If successful, however, it could become a route for creditors in other troubled SIVs.

This entry was posted by Gwen Robinson on Wednesday, November 28th, 2007 at 5:35 and is filed under Capital markets, Hedge funds. Tagged with cheyne finance. Edit this entry.