Versailles' investors pursue legal action
Wealthy backers who lost millions funding failed trade group Versailles are pursuing a court action in the British Virgin Islands to liquidate a company at the centre of the collapse.
The two members of the investor group want a liquidator to wind up business at the British Virgin Island company Trading Partners, get to the bottom of the reasons for the group’s collapse and recover their money.
A full hearing is due next month.
‘I believe this should be investigated’, one of the investors, Michael Moseley told the Financial Times. ‘I can’t think of anyone else who could do it apartfrom a liquidator’
Versailles floated on the Alternative Investment Market in 1995 and grew to a market value of £630m by the time its shares were suspended in December after the accounting irregularities were discovered.
The group of 20 super-wealthy investors were owed £23m when Versailles went bust.
Investors have claimed that they were unaware that the funds had been channelled from the UK to the British Virgin Islands, chosen for its minimal disclosure laws.
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