Park First administrators block rival administrator from making their case to investors

A crucial court date looms on Monday 25th as stricken Park First investors decide whether to appoint Park First's own choice of administrators, Smith & Williamson, or rivals Quantuma LLP, proposed by an investor group.

A reminder of where we stand at the moment:

Back when the FCA shut down Park First as an illegal collective investment scheme, £33m of assets were ringfenced by the FCA to meet repayments to investors.

Smith & Williamson claimed that this sum would only be available to investors if they voted to appoint Smith & Williamson, otherwise Park First would withdraw it, and investors would risk getting nothing.

#TeamQuantuma claimed that this was false, and that the FCA had confirmed to Quantuma that the £33m was still ringfenced for investors regardless of which administrator they appointed.

Continue reading...

Park First investors push back against proposal to “wipe off £115m of debt”

A meeting of victims in the collapsed Park First investment scheme to approve the administrators' proposals has been adjourned to 25 November, after a proposal to appoint alternative administrators was not included on the agenda.

Smith & Williamson (also administering Reyker Securities and London Capital and Finance) were the choice of Park First's directors.

US-based Safe or Scam LLP has proposed an alternative administrator, Quantuma LLP (currently attempting to gain control of collapsed care home investment scheme Carlauren Group).

Safe or Scam characterise Smith & Williamson's proposals as amounting to the write off of £115m of debt owed by Park First group companies to the companies in administration.

Continue reading...

Park First collapses into administration, £120 – 190 million investor funds at risk, LCF’s administrator appointed

On Thursday 4th July the Financial Conduct Authority and Smith & Williamson announced that Park First had been put into administration.

Smith & Williamson appear to be rapidly becoming the go-to liquidator for major collapsed unregulated investment schemes. Smith & Williamson are of course also managing the London Capital & Finance administration, with two of their LCF team - Finbarr O'Connell and Adam Stephens - also appointed to Park First.

Continue reading...

Store First court case kicks off: Government alleges £200m “house of cards”

The court case brought by Business Secretary Greg Clark against unregulated storage pod investment scheme Store First kicked off in Manchester's Business and Property Court on Monday.

Representing the Secretary of State, Paul Chaisty QC alleged that Store First raised £206 million from investors on the basis of "misleading information and testimonials”. The Government believes that Store First and related companies should be wound up to protect investors.

Store First insists that the scheme is viable and that winding the business up would cause investors to lose their money.

Continue reading...