"SocGen winds up $4.3 billion fund"
MarketWatch writes "SocGen winds up $4.3 billion fund", describing Societe Generale's announcement that "[T]he board of directors of Premier Asset Collateralized Entity, or PACE, decided to sell the fund's assets -- valued at $4.3 billion at the end of November -- to the bank at a price determined by the fund's usual valuation procedures." Commercial paper and medium-term note holders will see no losses, but, "Rating agency Standard & Poor's said there were insufficient funds from the asset sale to repay holders of the lowest-rated debt." MarketWatch adds, "The decision to wind up PACE followed a deal to restructure a similar $7 billion fund formerly run by U.K. hedge-fund manager Cheyne Capital.... Under the restructuring plan, some of the fund's assets will be auctioned off to set a transparent price. Goldman Sachs will then buy the remaining assets and package them in a new fund, with the original investors getting the choice of investing in the fund or receiving some of the proceeds from the sale. It's hoped that the same process could be used to restructure several other SIVs, including those previously run by Standard Chartered and by Germany's IKB."
