Investors vote to place Connaught bridging fund into liquidation
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.