The company filed for administration at the Chancery Division of the High Court, on the same day that Harlequin owner David Ames met with three investors from the Harlequin Investor Group at what was described as a “cordial” and “respectful” meeting.
The declaration was made yesterday by Carol Ames, a director of the company and David’s wife, at Palmers Solicitors in Basildon Essex. According to a source at Regulatory Legal Solicitors, which is representing the interests of a group of investors and which was present at the meeting yesterday, the documents were filed before the meeting was concluded but was not mentioned by Mr Ames.
According to the Court documents, the intention is to appoint Shipleys as administrators of the company.
An interim moratorium on legal action has been put in place, and Regulatory Legal have warned investors will now need to be much more organised in order to recoup some of their loses.
Trouble started at the company in January, when the FSA issued an alert warning about the high number of investors, particularly those using Self Invested Personal Pensions, invested in the Harlequin Property Fund.
Since then, Harlequin has been fighting a costly court case with investors who believe they are owed money they invested in its Buccament Bay Resort in Barbados and is now at the centre of a Serious Fraud Office investigation.
