Guardian Trust is holding a meeting for unit holders of the Guardian Mortgage Fund at 10.30am, 4th February 2009 at the Ellerslie Event Centre to seek investor approval to amend the trust deed and wind up the fund. The changes to the Trust Deed would provide Guardian Trust greater flexibility in managing the Fund for the benefit of unit holders during a winding up process. This includes allowing Guardian Trust to make partial repayments of capital.
Since the Fund was suspended in July 2008, liquidity has improved significantly, although market conditions have continued to deteriorate. A combination of the impact of the global financial crisis and falling property values has created a challenging operating environment for the Fund, even though conservative lending criteria has helped protect the Fund to date.
In the event that the resolutions are approved by investors, Guardian Trust will determine the capital repayment amounts and dates throughout the winding up process, depending on market conditions and the ability to liquidate loans or sell properties. It is anticipated that the first repayment would be made in the next few months, and Guardian Trust anticipates the winding up process to take between two to three years, again depending on market conditions and the ability to liquidate loans or sell properties.
An information booklet about the Fund and the unit holders meeting is below.
