ARM has filed an application in the UK courts requesting to be placed under voluntary arrangement and that a provisional liquidator be appointed in the UK, the Malta Financial Services Authority said.

In a statement last months, the authority had announced that a decision of the Luxembourg regulator (CSSF) to refuse to grant a licence to ARM as a regulated securitisation undertaking under Luxembourg law was final and could not be appealed.

The CSSF asked the Luxembourg Courts to order the dissolution and liquidation of ARM and 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.

The MFSA said that besides its application in the UK courts, on October 14, ARM issued a notice to bondholders informing them that on October 9, auditors Mark James Shaw and Malcolm Cohen 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 appointment of the provisional liquidators was made at the request of ARM on grounds that:

1. it is just and equitable to do so;

2. ARM is insolvent;

3. ARM has ceased its business;

4. ARM’s centre of main interests is in the United Kingdom and, therefore, the English court may open insolvency proceedings.

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

However, they were urged to be vigilant and stay aware of any developments. At some point, they might be invited to register their claims and they would need to be ready to do so.

The MFSA said that given the recent developments in the UK, it was still unclear whether the process related to the dissolution and liquidation of ARM in Luxembourg would continue.