First liquidators appointed to an open ended investment company
Special investment vehicle becomes the first of its kind to enter into liquidation
The first provisional liquidators to an open ended investment company
(OEIC)
are set to be appointed.
Lawyers from
Charles
Russell secured the appointment of provisional liquidators to an
OEIC.
These companies can adjust its number of shares depending on the level of
investment being made.
This OEIC had raised £4m in cpaital from more than 300 UK investors, but its
value had decreased signficantly in the last 18 months.
The liquidator will run the rule over its property portfolio and other interests
worth in excess of £5m.
Liquidator Cameron Gunn from
ReSolve
will protect the assets from creditors until a full liquidation hearing takes
place. Then the assets will be sold to create a return for investors and
creditors.
“Due to the strict regulation of authorised investment vehicles such as
OEIC’s and the way in which they are structured, the application of formal
insolvency proceedings is unheard of; the FSA have stated that this was the
first appointment of its kind. These proceedings have paved the way for similar
applications in the future, should the need arise,” said James Hyne, head of
corporate recovery and insolvency at Charles Russell.
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