View more on these topics

92% vote to liquidate Connaught Series 1

Investors last week voted overwhelmingly in favour of liquidation for Connaught Income Fund Series 1, which helped provide funds to bridging lender Tiuta.

At an investors’ meeting at the National Exhibition Centre in Birmingham last Wednesday, over 92 per cent of investors present chose a formal insolvency process to wind down the unregulated collective investment scheme, which at one stage was £118m in size.

At the meeting, investors also chose to replace BDO as the administrator of Tiuta International Limited, the arm of Tiuta plc which used £105m of Series 1 funds as a funding line, and to replace the firm with Duff & Phelps. Tiuta International entered administration last month with the loan books sold to Connaught for £1.

Connaught Asset Management had the casting vote and chose to honour the wishes of investors in appointing D&P as the fund’s liquidator.

Investors were faced with three options regarding the future of the Series 1 fund. Around 6.5 per cent voted for an informal wind down of the fund and around 1 per cent voted for a formal termination without an insolvency process. Both of these options would see asset manager Connaught Asset Management, general partner Connaught Administration Services and fund operator Blue Gate stay in control of the fund. A formal insolvency process is likely to be more expensive but it is more likely to allow investors to find out more about the downfall of the fund.

Recommended

MI buys up FYB Network

Mortgage Intelligence last week bought mortgage network Life and Easy, which trades as FYB Network. FYB, which has around 50 advisers, will join the Mortgage Intelligence and Mortgage Next brands under the umbrella of Mortgage Intelligence Holdings. MI would not disclose how much the deal was worth. MIH managing director Sally Laker says: “FYB have […]

TBMC launches buy-to-let product with Hinckley and Rugby BS

Buy-to-let and commercial mortgage specialist TBMC has launched an exclusive buy-to-let mortgage with Hinckley and Rugby Building Society. The initial rate is 3.74 per cent for two years, representing a 1.90 per cent discount to the lender’s SVR up to 75 per cent. The product comes with a fixed completion fee of £1,999 and no […]

1

LV= unveils gender pipeline strategy

LV= will switch to gender neutral rates on 1 December in an effort to deal with pipeline cases ahead of gender neutral pricing. The provider will underwrite an application based on medical information provided and offer customers a pre-gender premium as long as the application is received by 1 December. If further medical evidence is […]

Newsletter

News and expert analysis straight to your inbox

Sign up