Lazard World Trust Fund sets out wind down proposals – Lazard World Trust Fund has published a circular to effect a managed wind-down of the company. The company will sell off its assets, trying to strike a balance between speed and value maximisation.
Shareholders are being asked:
- to amend the investment policy to enable a controlled, orderly and timely realisation of the assets;
- to approve a reduction of company’s capital and allow compulsory redemptions of its shares, on a pro rata basis and at the Board’s discretion; and
- to grant authority for the shares redeemed to be cancelled and for company’s Articles to be amended accordingly.
Further details are set out in a Circular which has been posted to shareholders today. The EGM will be held at 49, avenue J.F. Kennedy, L-1855 Luxembourg on 11 January 2019 at 3.00 p.m. CEST.
Management Agreement
The board and the manager have agreed to remove the performance fee with effect from 1 January 2019. In addition, once the Net Asset Value falls below US$50 million, the management fee payable shall reduce from 0.1875 per cent. to 0.15 per cent. per annum (says the statement but we think it means per quarter). Upon the appointment of liquidators in due course, the company may terminate the appointment of the manager on written notice.
Dividends
In view of the proposals, the board believes it would be in the best interests of the company and shareholders to suspend any further dividends.
WTR : Lazard World Trust Fund sets out wind down proposals