Tiuta plc enters administration
Following on from the recent Connaught Asset Management statement, the directors of Tiuta plc have placed the company into administration.
Tiuta plc released the following statement:
“Following the administration of Tiuta International as the principal lending arm, a decision has been taken with reflection and approval of the FSA to place Tiuta plc into administration. The process has yet to be completed and this step has been taken to preserve the integrity of the underlying business, the reputation of the Tiuta brand and also the lending platform.”
Tiuta International, the holding firm for Connaught Asset Management’s £100m series one bridging loan fund, had recently been placed into administration.
This followed the announcement in March, that Connaught Asset Management suspended redemptions from its Income Fund Series 1 after a review flagged the possibility some of the fund’s loans may be under-secured.
Last year the Financial Services Authority warned on Connaught’s Series 1 and offshore Series 2 income funds, saying marketing literature making comparison between the “low risk” funds and fixed-rate bank accounts was misleading.