The administrators of Signature Living Hotel (the parent company of Signature Capital) have released their latest update.
Much of the report is devoted to an update on the running of Signature Living's hotel properties and the sale of assets, but the expected outcome for retail investors and all other unsecured creditors of the company remains total losses.
The administrators of Signature Living Hotel, the parent company of the Signature Capital investment scheme, have released their initial report.
How much the company owes to investors is difficult to pin down. Signature Capital consists of a dizzying web of 106 currently active companies controlled by Lawrence Kenwright. Although it was these subsidiaries that borrowed money from investors, a guarantee was typically given by Signature Living Hotel Ltd as the parent company.
According to the Gazette, the parent company of Signature Capital, Signature Living Hotel Limited, has been put into administration.
Duff and Phelps were appointed as administrators. Other collapsed unregulated investment schemes currently administered by Duff and Phelps include Blackmore Bonds and Carlauren.
Unregulated hotel investment scheme Signature continues to struggle with repayments to investors, and has been the subject of a series of news articles from outlets including the BBC and the Liverpool Echo in recent weeks.
Six months ago in May the BBC first covered Signature's late payments to investors.
Two weeks ago the BBC reported on international investors flying into the UK in attempt to chase their money.
Signature Capital offers a range of unregulated property investments.
As at March 2019, these investments included an investment in the Dixie Dean Hotel paying 12% over 12 months, and an investment in The Signature Flotel paying 12% over 12 months (with a higher minimum investment).
I have seen an email detailing a further investment in the Martins Bank project paying 10% per year for investments between £15k and £45k, rising to 16% per year for investments of over £250,000.
Signature Capital frequently changes the individual properties on which its investments are based. However the interest rates above are typical of their offerings, based on previous offerings which are now "sold out".
Continue reading for a review of Signature Capital's investments.