Link Group closer to LFS exit as Woodford repayment scheme approved
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The news: The UK High Court has approved a scheme by Link Administration Holdings' UK arm, Link Fund Solutions, to repay creditors of the failed Woodford Equity Income Fund.
The numbers: The UK-based Woodford investment fund, led by famed stock picker Neil Woodford, collapsed in 2019 after a run of redemption requests, with 300,000 investors attempting to exit. Woodford's fund administrator Link Fund Solutions — owned by ASX-listed Link Group — froze the $6 billion fund on 3 June 2019.
The High Court ruling was made after 93.7% of fund's investors — representing 96.1% of the value — voted in favour of creating the settlement scheme of up to £230 million ($445 million) in December 2023.
The context: After agreeing to the redress scheme in April last year, Link Group sold Link Fund Solutions to Dublin-based Waystone Group in October.
In an ASX release, Link Group said it expected the scheme to become fully effective by 2 March provided that no appeals are brought against the court ruling. First pay-outs to investors are expects from April.
The source: ASX announcement
