Administrators appointed to Tiuta International Limited

Administrators appointed to Tiuta International Limited



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Administrators BDO LLP were appointed to Tiuta International Limited, a former subsidiary of Tiuta Plc and specialist partner to the Connaught Income Series 1 Fund on 5th July 2012. 

According to Steven Nicholas, CEO of Tiuta Plc, Tiuta International Limited was sold to Connaught Asset Management and is no longer part of the Tiuta Group. 

He stressed that the news is nothing to do with Tiuta Plc and will not affect the firm. 

The FSA stated that Connaught Asset Management took control of the portion of the loan book held by London-based Tiuta International Limited on 13th June 2012.

In addition, the Connaught Series 3 Fund was suspended on 5th July 2012, and it will enter an orderly wind down process. 

Mike Davies, Chairman of Connaught Asset Management, said: “Following the acquisition of Tiuta International by Connaught Asset Management (CAM), the Directors of CAM decided to place Tiuta International Ltd, as the company holding and owning the loan book for the Connaught Income Fund Series 1, into administration in order to secure the orderly wind-down of the loan book and to ensure Connaught is being as transparent as possible during this process.  

“This decision has nothing to do with the wider Tiuta Plc group.  We have opted for this as Connaught has never handled any investor monies and we have no intention of doing so now.  


“Between the acquisition of Tiuta International and placing it into an administrative process all bank accounts have effectively been frozen with no monies leaving its bank account. The independent administrator will be responsible for all money within bank accounts and investors will be able to see that any monies transferred around will be done so transparently.  


“CAM’s objective has been to effectively appoint an independent custodian to manage the wind down of the loan book and our decision to opt for administration protects investors and Connaught, and clearly demonstrates that we have no other intention but to recover as much money as possible for investors in an open and transparent manner.”


BDO business restructuring partner, Danny Dartnaill, added:  “The joint administrators are taking all necessary steps to safeguard the assets under their control and to assess the optimum strategy for maximising recoveries for the creditors of the Company. We will ensure that the underlying investors in the Company’s largest creditor, The Connaught Income Fund, Series 1, are kept well informed as to progress and the potential likely outcome.” 

2 Comments

  • If there are any brokers that will be affected as a result of this administration, Dragonfly Property Finance is here to help and is wholly committed to the bridging finance industry.

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    Andrew

    Tiuta plc would of sought the funds from the investors to lend out to its own clients, underwritten the loans, done its due dilligence and valuation assessed the way the client will exit the loan. Now the fund has failed, it is a reflection on the underwriting but also on the current market, as exit finance and sales are not guaranteed and there in lies the risks. It's a bit naughty to try and pass the buck and pretend nothing is to do with Tiuta plc.

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