Investors vote to place Connaught bridging fund into liquidation
By Bridging Loan Directory
Investors in the UCIS bridging finance fund have voted overwhelmingly in favour of placing the Connaught Income Fund Series 1 into liquidation.
Two days ago at an investors’ meeting at the National Exhibition Centre in Birmingham, over 92 per cent of investors present chose a formal insolvency process to wind down the unregulated collective investment scheme (UCIS).
At the meeting, investors chose to replace BDO as the administrator of Tiuta International Limited with Duff & Phelps. Tiuta International entered administration last month with the loan book sold to Connaught for £1.
Connaught Asset Management had the casting vote and chose to honour the wishes of investors in appointing Duff & Phelps 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. A formal insolvency process is likely to be more expensive but it is more likely to allow investors to find out more about the circumstances surrounding the problems with the fund.
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