Goldman completes $7 billion SIV restructure

By Olesya Dmitracova and Elena Moya

LONDON (Reuters) - Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) has completed a long-awaited rescue of a $7 billion structured investment vehicle, the receivers said on Tuesday, paving the way to clear up more troubled mortgage assets.

The deal to restructure the SIV, formerly run by British hedge fund Cheyne Capital, comes as Wall Street's biggest investment bank beat expectations by avoiding major losses on assets, though quarterly earnings dropped by 11 percent.

"We are delighted ... we are in a position to sign a restructuring agreement in respect of the Cheyne Finance portfolio today," said Neville Kahn, of accountancy firm Deloitte and Touche LLP DLTE.UL, who act as receivers.

Under the restructuring, Deloitte will price the assets in the market, selling a minority part of the portfolio to the group of creditors who want to cash out, the parties involved said in an official statement.

That will allow Deloitte to sell the rest of the assets to the remaining creditors -- who have already agreed to reinvest that money in a newly established vehicle set up by Goldman Sachs -- which will hold the rest of the portfolio.

The sale of the securities is expected to be completed on or about July 17, Deloitte said in the statement.

Other SIVs, including Golden Key, Whistlejacket and Rhinebridge, are expected to follow Cheyne's model, being restructured by Goldman, said Stephen Peppiatt, at Bingham McCutchen, a legal advisor to a Cheyne senior creditor.

"We thought that Cheyne would be restructured some time ago, it has taken longer, but now there is a template that others will follow," Peppiat said.