Mainsail II Ltd., a defaulted $1.5 billion structured investment vehicle, will have its assets auctioned next week by KPMG LLP and Cairn Capital Ltd., according to a person with direct knowledge of the sale.
KPMG and Cairn are seeking bids for the SIV's asset-backed bonds, subprime mortgage notes, and collateralized debt obligations, according to the person, who asked not to be identified before the sale is finalized.
Mainsail's creditors will choose how much of their assets to sell at the Sept. 18 auction, the person said; the rest will be transferred to a new company created by Goldman Sachs Group Inc.
The vehicle, created in July 2006 by the London hedge fund Solent Capital Partners LLP, was forced to wind down after investors shunned the short-term notes it issued to buy higher-yielding U.S. mortgage-backed securities.
