Last week I referenced a story in the OC Register by Ron Campbell about the failure of $80 million in “structured” investments the County has with a company called Whistlejacket.
Today, the Register’s Ron Campbell reports that Street’s Whistlejacket troubles are getting worse. Whistlejacket is in receivership. A British court ruling indicates O.C. won’t get anything back until 75 other investors are paid. The court ruled that the senior investors must be paid off as their investments mature. If that were to occur, analysts indicate that the assets will be exausted long before the Orange County investment matures.
In February I asked Street’s spokesperson Keith Rodenhuis if the County were to try to dump $80 million in Whistlejacket investments is there any indication that there would be buyers out there willing to purchase at our investment value? “We are a ‘BUY AND HOLD’ office,” Rodenhuis said. “We anticipate still getting back all of our principal investment.” According to Campbell’s report, they are still holding on to this “hope.”
Oh well, it’s only $80 million down a rabbit hole. Happy Easter!ÂÂ
The best part is Peggy Lowe’s article over on Total Buzz: “This follows Street’s spanking yesterday at the supes meeting, when he was told he better tell the board when stories like this will appear in the press. Street promised supes that he would ‘double make sure’ to do that. Wonder if he did…”
What about the 100 grand the super’s paid to the investment advisor you said a month or so ago that the investments were garde A stuff.
Can the county recover that 100 grand too?