Secured Energy Bonds, which collapsed in 2015 owing £7.5 million to investors, has been moved from administration to liquidation.
Throughout the administration the administrators have recovered £289,000 from SEB’s assets, and spent almost all of it. £275,000 has been spent on the costs of the administration, mostly administrators’ fees (£85k), legal fees (£107k) and VAT (£43k).
Other than shares in BlueNRGY Group, which is still attempting to regain entry to the NASDAQ market and whose value is unknown, the main item on SEB’s books is an outstanding claim of £5.8 million plus costs against Independent Portfolio Managers, the FCA-authorised company that signed off SEB’s misleading literature.
IPM was placed into liquidation in November 2018. The administrators of Secured Energy Bonds, Grant Thorton, were also appointed liquidators of IPM in December 2018.
There’s been no public updates on the IPM liquidation since then. In their report on SEB, dated February 2019, the administrators say that investigations into the financial affairs of IPM are in their early stages, and it is too early to comment on whether there will be any realisations. IPM’s last accounts from March 2016, which reported net assets of only £130k, give SEB investors little hope of any substantial recoveries.
SEB investors may in any case no longer have any interest in the administration, as the Financial Services Compensation Scheme has begun paying out claims to them and investors in Providence Bonds.
The FSCS has confirmed that as of 12 April 2019, it has paid out a total of £373,900 in relation to claims against Providence and Secured Energy Bonds. While this is a small fraction of the c. £15 million invested across both companies, it has confirmed that “a large number” of claims are still in progress.