The former trustee of collapsed London Capital & Finance (LCF) has been ordered to wind up by the high court.
Global Security Trustee (GST) was removed from its role in December 2019, after a judge expressed “serious concerns about the conflicts of interest and expertise of those involved”.
A month later, independent trustee Madison Pacific Trust was appointed in its place, for which GST had to contribute £150,000 ($192,822, €164,401) to cover some of the costs needed to find its replacement.
LCF was involved in the selling of mini-bonds to retail investors, which saw over 11,600 victims lose around £237m.
The saga continues
In addition to this, the mini-bond firm’s administrators have forced one of its units to enter insolvency to retrieve money London Capital & Finance is owed for loans, as they try to recover as much as possible for investors, legal publication Law360 reported.
The unit is called London Capital Marketing, incorporated in June 2016, and it took at least £386,582 in loans from LCF.
LCF administrators are hoping to raise money by placing London Capital Marketing in administration.
