The UK courts have appointed liquidators for ARM Asset Backed Securities SA (ARM) – which could have an impact on ARM’s dissolution and liquidation in Luxembourg.

In September, the Luxembourg regulator CSSF refused to grant a licence to ARM as a regulated securitisation undertaking under Luxembourg law and asked the Luxembourg Courts to order the dissolution and the liquidation of ARM.

The Luxembourg Courts were expected to appoint a supervisory judge, who would be in charge of the super­vision of the liquidation of ARM, as well as one or more liquidators.

However, the Malta Financial Services Authority issued a statement yesterday explaining that Mark James Shaw and Malcolm Cohen of BDO LLP, an auditing and professional con­sultancy firm, were appointed as provisional liquidators of ARM by order of the High Court of Justice of England and Wales.

The provisional liquidators have the exclusive power to control and manage ARM’s affairs, and the powers of the directors of ARM are suspended.

The provisional liquidators are now assessing which assets belong to ARM and their value, as well as how much may be due to creditors.

The MFSA said that, at this stage, bondholders do not need to register their interest or claim in the provisional liquidation.

“However, we would urge all bondholders to be vigilant and stay aware of any developments. At some point, bondholders may be invited to register their claims and bondholders will need to be ready to do so,” the MFSA said.