Arch Cru fund manager pays investors £17.6m but faces court battles

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Arch Cru fund manager SPL Guernsey has paid back £17.6m to investors in the year to 31 March but faces court battles with a number of other investors.

In a statement published today, the firm, which manages the cell companies where Arch Cru investments were made, says it is trying to reach out of court settlements with investors.

SPL Guernsey chairman Hugh Aldous says: “We are prepared to discuss settlement with the defendants, and have sought to do so with the principal defendants for some months, whilst pressing on with our work towards court hearings if settlement cannot be achieved.

“We would hope that settlement can prevail, but nothing is predictable in litigation. We are under strict confidentiality terms about the current process and therefore offer no comments.”

SPL Guernsey took over the cells three years ago and has paid back £136.4m, with £63m returned last year. However, Aldous warns the rate of repayments will “begin to slow” as the firm gets to the tail end of the fund with the last £25m ”pretty illiquid”.

Total assets in the cells have dropped more than £30m in 12 months from £114m last year to £81.1m at 31 March. The firm has spent £2m on portfolio management.

The IFA Centre is looking to bring a legal challenge against Capita on behalf of Arch Cru investors not covered by the Financial Conduct Authority’s consumer redress scheme.