It is unlikely that investors in BASIS Capital’s Basis Yield Alpha Fund will get their money back after the fund was put into provisional liquidation.
The creditors will see any money before the investors if the fund, that faces losses of more than 80 per cent, is placed in liquidation after the Sydney fund collapsed after the pressures of the US sub-prime crisis.
Liquidator Grant Thornton will assess the assets and creditors of the fund and then a decision will be made to decide if the fund will go into liquidation.
The fund had invested in collateralised debt obligations (CDOs) which aim to spread the risk, however commentators describe the process as being like putting horse dung and rubbish into a grinder to make sausage.