April 30, 2009 / 1:46 PM / 10 years ago

Whistlejacket sells assets for more than $3.3 bln

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LONDON, April 30 (Reuters) - Receivers for structured investment vehicle (SIV) Whistlejacket said on Thursday its securities portfolio fetched an average price of 67.1 percent of notional value at an auction, providing it $3.3 billion overall.

The auction attracted 14 bidders for roughly half of the SIV’s $5 billion portfolio, while the other half will be sold to Goldman Sachs International (GS.N) at the same price as the auction, Deloitte said.

“In view of the current environment and the legal and practical complexities that have had to be overcome, this a great result for the senior creditors,” said Neville Kahn, Deloitte partner and joint received in a statement.

Whistlejacket was declared insolvent in February 2008 when a fall in its value led Standard Chartered (STAN.L) to shelve a plan to provide liquidity.

Its portfolio was around $7 billion at that time, but some of the assets have since been sold. The receivers made an initial distribution to creditors in October 2008 of 21 percent of outstanding capital, Deloitte said.

SIVs were created by banks, hedge funds and other institutions during the credit boom to raise money in the short-term debt markets and buy longer-term assets. They went under after short-term funding dried up in the credit crisis.

Market sources said last week that the auction would include U.S. mortgage-backed securities, consumer ABS, collateralised loan obligations, collateralised debt obligations and corporate bonds.

The settlement of sales from the auction is set for May 5 and of the sale to Goldman for May 7. The receivers will make a distribution to senior creditors, including senior noteholders, around May 7, Deloitte said.

Deloitte said it was not yet able to comment on the overall returns to senior creditors.

Reporting by Jane Baird; Editing by David Cowell

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