HFA Accelerator Plus (HAP) has hit a roadblock in its attempt to wind back its leveraged instruments, an initiative it flagged to the market last year.
HAP is now reporting there is unlikely to be sufficient liquidity in its underlying investments to allow it to complete the first tranche of its buy back program, proposed for May this year.
The counterparty banks of the HAP fund have indicated they may require full deleveraging of the leveraged instruments before net proceeds are paid to HAP, and the process has been complicated by the liquidity issues facing the underlying manager of HAP.
The board of HAP is now taking advice on the matter and is in discussions with its counterparties and the manager of the underlying fund to attempt to realise its investments in the current environment.
