A court has ruled that Whistlejacket, a structured investment vehicle (SIV) that went into receivership last month, must pay off creditors that were due to be paid on the day it declared insolvency.

The decision, made last week, may have some impact on how creditors of other troubled vehicles -- Cheyne Finance, set up by hedge fund Cheyne Capital Management, and Rhinebridge Plc, set up by German bank IKB (IKBG.DE: Quote, Profile, Research) -- will be paid.

Deloitte & Touche was appointed as receiver of Whistlejacket on February 12 after a drop in the value of the SIVs assets led its sponsor, Standard Chartered (STAN.L: Quote, Profile, Research), to shelve a plan to rescue it by providing liquidity. The SIV was declared insolvent on February 15.

Deloitte declined to comment on how the judgement might impact Cheyne and Rhinebridge, for which it is also acting as a receiver.

A statement on the ruling was issued on Tuesday, detailing how different holders of debt issued by Whistlejacket would be paid.

The court ruled that holders of Whistlejacket U.S. medium-term notes, due to be redeemed on February 15 on the same date as the insolvency notice, should be paid the amount due in full.

The obligation to repay them "occurred prior to the occurrence of the Insolvency Redemption Event and therefore did not fall to be redeemed on the Insolvency Redemption Date," the statement said.

The Insolvency Redemption Date is March 16, when holders of medium-term notes due to be redeemed after February 15 will be paid.

"If there are investors whose notes fell due before the insolvency event but after the SIV stopped paying, this could have the effect of releasing some of the money to them," said one London-based analyst who declined to be named.


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