Receivers Deloitte said an insolvency ruling made on Wednesday means there is no need for an immediate sale of assets in the structured investment vehicle (SIV) Cheyne Finance.
The ruling will stop short term debt payments from the SIV, which is managed by British hedge fund Cheyne Capital Management, said a source familiar with the matter.
Cheyne is one of a group of SIVs hit by market turmoil linked to the subprime mortgage crisis. Deloitte was appointed as receiver in early September.
It will also help avoid a fire sale of assets. SIVs rely on short-term funding to invest in longer-term securities.
"The Cheyne Finance receivership is highly complex but we are very pleased with the progress being made to implement a refinancing or whole book solution of which we are in advanced negotiations," said Neville Kahn, receiver and Deloitte partner in a statement.
He said the ruling "has not had a detrimental effect on these negotiations and we have no need for immediate liquidation of the assets within the book."