Aberdeen High Income calls in the receivers

Investors in Aberdeen High Income Trust were yesterday warned they could lose all their money after the split capital investment trust went into receivership.

Aberdeen High Income has appointed the accountancy group Ernst & Young as receivers after "careful consideration of the company's financial position".

But Tom Burton of E&Y, who is joint administrative receiver, warned investors that they may not get any money back. Many have already seen the value of their holding fall by 90 per cent.

He said: "We will have a look at the value of the investments and decide on the best strategy to get full value from them.

"It doesn't look good for investors at the moment. It looks as if we might be able to give the lenders a decent return, but it is unlikely we will get anything for the shareholders."

Mr Burton said the value of the Aberdeen High Income Trust had fallen from about £190m to just £30m, while its debts are estimated to be £30m.

He added that the trust, which had invested in other splits, was struck by a "double whammy" of falling stock markets and a fall in the value of the splits it invested in.