More than $43 million of investors' money in Midlands Mortgage Trust Group Investment Fund has been unfrozen but investors must accept a 10 per cent downgrade in the value of the unit fund if they choose to make an immediate withdrawal.
They were told the fund units were now worth
90 cents each and have been sent withdrawal forms.
The fund was frozen for 90 business days in October after commercial property loans, including to now-bankrupt Wellington property developer Terry Serepisos, fell into default.
Investors were told that directors aimed to "protect as best as possible the capital investment made by investors in the fund and to continue to try to pay to investors a competitive rate of return".
In the January newsletter, investors were told the freeze would continue until a revised unit price was worked out and that the fund needed "time to heal".
