The administrators of Secured Energy Bonds have posted their latest six monthly update, which can be read in full on Companies House.
So far the administration has realised £288,579 in assets, of which £272,905 has been paid out in administration costs, predominantly the administrators' own fees and the fees of their legal advisors (and VAT). According to a schedule in Appendix B, a further £169,842 has been incurred in legal fees to date but not yet paid out. Bondholders' claims stand at £7.5 million.
It's been nearly a year since MJS Capital (known as Colarb Capital since October; to avoid confusion, for the rest of this article we will continue using their original and less silly name) started to fail to pay investors' interest and capital on time, something it has blamed on "banking issues".
Investors are now being told that to receive their funds back, they must switch from MJS' bond series 3 or 5 to Colarb bonds series 4. Investors have been promised that if they do, quarterly interest payments will resume and they will receive their (already overdue) capital back after a year.
Two groups have been set up on Facebook for London Capital & Finance investors looking for information after the Financial Conduct Authority shut down the company pending an ongoing investigation.
It is now just over a week since the FCA froze the accounts of London Capital and Finance and, after over three years of masterly inactivity, dramatically plunged investors into limbo.
Drew J of the blog "Damn Lies and Statistics" and the members of the MoneySavingExpert forum have been doing some excellent digging into the limited amount that has been publicly disclosed about LCF's finances. Rather than regurgitate all their research myself (which does deserve reading in full), here is a summary of the crucial points that have emerged over the past week: Continue reading...
About a month ago the FSCS declared Independent Portfolio Managers in default, shortly after its liquidation.
The FSCS is now inviting claims from investors in Secured Energy Bonds and Providence Bonds.
The FCA's ongoing investigation into London Capital & Finance took a more serious turn yesterday when the FCA revealed that it has placed the following restrictions on the company:
- It may not (without the prior consent of the FCA) deal in any way with its assets, including the money held in its banks accounts.
- It must cease conducting all regulated activity.
Around a couple of weeks ago the FCA ordered London Capital & Finance to remove all its marketing materials. The FCA has now announced:
that it is appropriate to publicise the fact of its investigation into LCF now, as a result of other public actions taken by the FCA and in anticipation of legitimate queries from investors regarding the firm.
The FCA is unable to say whether investors are likely to get their investment back at this stage.
Since early 2018, investors in MJS Capital (now Colarb Capital) have experienced issues with having interest paid on time and receiving their capital back on time.
Numerous comments have been left on this blog from frustrated and often frightened investors trying to find out what action they can take.
MJS Capital issued unregulated loan notes which were, by their nature, extremely high risk and only suitable for sophisticated and high net worth investors. Despite this, they were promoted by MJS Capital representatives as "very low risk" and "a safe haven".
An investor action group has been set up on Facebook at https://www.facebook.com/groups/mjscapital/ to help investors come together, share information, and find a way forward. The group is "closed", which means that anything posted in the group will only be visible to those who have been allowed to join.