The suspended EEA Life Settlements fund has submitted its plans to the Guernsey regulator for restructuring.
Dealing in the £600m fund was suspended in November 2011 after EEA reported "unprecedented redemptions" following Financial Services Authority (FSA) draft guidance condemning life settlement funds as "Ponzi-like" and "death bonds", as well as being unsuitable for retail investors.
Under proposals outlined last March, investors will be offered three options: to continue to hold existing shares in the fund; to opt for a run-off share class; or the ability to dispose of shares outright to institutional investors at a discount.
In a letter to shareholders, chairman Mark Colton said the board "is working with the fund's auditors to complete the latest financial statements and once this is done and, assuming the restructuring plan wins the necessary approval of the relevant authorities in Guernsey, a detailed formal proposal will be sent to shareholders."
Investors will then be asked to vote on the proposal at an extraordinary general meeting.
It shocks you
2,000 people surveyed
Six FTSE 100 female CEOs earning 32% less than men
It is the 'Second City'