Administrators have been appointed to Manchester firm Blackmore Bond.
The firm, which began issuing mini bonds to retail investors in the city back in 2016, has run into trouble with bondholders who claim they have not received contractual quarterly payments since October last year.
According to administrators Geoff Bouchier and Benjamin Wiles of Duff & Phelps Ltd, that's despite assurances from directors throughout 2020 that the situation would be resolved.
They were appointed on Wednesday.
Blackmore Bond raises funds via wholly owned special purpose vehicles invested in a portfolio of property development projects.
Blackmore had promised returns of up to 9.9% for a minimum investment of £5,000.
It is understood that the value of the outstanding bonds totals around £45m.
According to Duff & Phelps, a representative bondholder recently issued a winding up petition against the company.
Having become aware of the winding up petition and with increasing concern about activities affecting the interests of the bondholders, the security trustee then took steps to appoint administrators.
Mr Bouchier said: “There has been concern regarding the company’s affairs for several months so it will be a relief for bondholders that independent professionals have now been appointed to the company.
"We are immediately undertaking a review of the properties and will immediately commence an investigation into the company's financial position.”
