Tiuta and Connaught face imminent insolvency proceedings

At a meeting of investors in the Connaught Income Fund Series 1 on 12 September 2012, 92.42 per cent of the investors who voted wanted the Fund to enter a formal insolvency process. The lobbying by Connaught in favour of an informal process where Connaught was involved as managing the loan portfolios was emphatically rejected. It is understood that 68.37 per cent of ‘participations’ voted. The Fund is likely to be wound up shortly.

There was much discussion of a petition to wind up Tiuta plc based on a guarantee in favour of the Fund. This relates to a new guarantee from Tiuta plc in favour of the Fund contained in a share purchase agreement. This is likely to be pursued by Geoff Bouchier of Duff & Phelps as a liquidator of the Fund.

There was also discussion of a petition being presented to Connaught Asset Management to be supported by large numbers of investors who had made redemption requests over six months ago. There was an appeal at the meeting for anyone who made a redemption request to send in the details to the Action Group (connaughtactiongroup@gmail.com) together with your contact details.Mike Davies was urged at the meeting to consider an early appointment of Geoff Bouchier (and another insolvency practitioner) as administrators rather than wait for Connaught to be wound up.

Investors left the meeting at the NEC in Birmingham in buoyant mood, as it now seems possible to move against Tiuta and Connaught without undue delay. Both now face imminent insolvency proceedings.