MVP Fund Range PCC Limited

Initially appointed as Administrators by the Royal Court of Guernsey after an application by the Commission for Compulsory Liquidation was vigorously defended by the Directors


Purpose of the Administration Order was to “achieve a more advantageous realisation of the Fund’s asset than would be effected in a winding up”

With assistance from the directors, the Administrators undertook an assessment of the assets held by the Fund in order to prepare a report to the Court to provide a recommendation for a realisation strategy

  • Assets were illiquid and had little prospect of achieving value at or near NAV if a “fire sale” was undertaken. A 2 – 3 year time frame was expected to be required to realise assets at or near their NAV
  • In a Guernsey Compulsory Liquidation, a Liquidator is required to convene a Commissioner’s hearing in Court and have accounts approved before distributing any funds; it would be cost prohibitive to the Fund to make any interim distributions as and when assets are monetised
  • A Voluntary Liquidation (“VL”) was considered a more cost effective option however Section 377(2)(a) of the Companies (Guernsey) Law, 2008 does not allow a resolution for a VL to be passed whilst an Administration Order is in place


  • With the assistance of the Directors and the Investment Manager, the Administrators obtained shareholders support to proceed with a VL to oversee an orderly realisation of the Fund’s assets over time
  • This was achieved by applying to the Royal Court to hold an Order for the discharge of the Administration “in escrow” pending the outcome of an EGM to pass a resolution to put the Company into voluntary liquidation.
  • Over 80% of registered shareholders voted in favour of the VL
  • The discharge order took effect as soon as the Court was advised the resolution was passed

Value Added:

  • The solution allowed for a controlled wind down of an illiquid fund to realise assets at a higher value than otherwise may have been the case and allow for interim distributions without incurring the costs of seeking Court approval