Investors in mini-bond seller Blackmore Bond have been warned by directors that sales of the company’s property have not generated enough money to repay them.
Blackmore raised money from ordinary investors by issuing mini-bonds, with the aim of using the money to build houses and to reimburse investors with house sales.
He started experiencing cash flow issues in 2019 and the directors of Duff and Phelps were appointed in April of this year.
Directors say eight of the company’s eleven real estate developments have now been sold but little money is left after third-party loans are factored in.
They added: “The co-administrators are now of the opinion that the recoveries made on the property rights will be insufficient to allow a distribution to creditors after taking into account the administration costs.”
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This notice was published: 2020-11-23 17:35:40