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Credit Sails notes cost kiwis $91 million
Cayman Islands-registered Credit Sails has told its New Zealand investors the $91 million they poured into its bond issue is effectively gone.
Investors in the convoluted bond issue that relied on momentum notes will see a return $11.96 for every $1,000 the put in - a loss of almost 99% on the bonds called Credit Sails first issued in 2006.
The collapse of an Icelandic bank last year kicked off the troubles for Credit Sails, which were effectively a collateralised debt structure, and wiped 71% of their value.
More than 1500 New Zealanders invested in the notes, with 56 of these putting in $100,000 or more.
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