Phillip Nunn and Blackmore >>Investors in Blackmore Bond, the bankrupt property investment arm of London Capital & Finance, may recover little more than £5 million of their £47 million investment.
Following an assessment of Blackmore’s eleven properties, administrators issued a dire diagnosis.
Phillip Nunn Backstory
Blackmore, led by Patrick McCreesh and Phillip Nunn, advertised bonds with extraordinarily high annual interest rates of 6-10% to hundreds of investors, many of whom were elderly.
But, like LCF before it, the firm failed in April when it ceased recruiting new investors and stopped paying interest to existing investors. Currently, there was just £906 in the bank account.
Blackmore Bond Condition
According to a number of media publications, the majority of Blackmore’s real estate projects are severely behind schedule and have been remortgaged to other lenders who have first claim on the properties.
Administrators Duff & Phelps said that they had recently learned that Blackmore had sold an additional £2.3 million in international sales on top of the £44 million in bonds bought by around 2,000 UK investors who purchased approximately 3,000 bonds.
In addition to building assets capable of sustaining such high interest rates, administrators Duff & Phelps said that Blackmore was required to pay a 20% charge to marketing agency Surge for any public funds received. Surge served the same purpose for LCF, whose bankruptcy in 2017 put at risk £237 million in pensioner assets.
Today’s administrators’ progress report reveals for the first time that Blackmore lost more than £8 million in 2018, after losses of £7.6 million in the prior 18 months.
Blackmore Flaws
Blackmore solicited funds from the general public and then loaned the funds to specifically constituted corporations that purchased and developed real estate. Then, these so-called Special Purpose Vehicles borrowed money from lenders who had been granted preferred security over the assets of the bondholders.
According to the administrators, the interest rates on the loans were high since they were often short-term or bridge loans. Numerous times, lenders have placed SPVs into receivership to reclaim their collateral.
Even though the assets are now worth close to £11 million, Duff & Phelps has warned that Blackmore bondholders would only get a maximum of $5 million before administrator expenses.
Administrators informed investors that the Financial Services Compensation Scheme did not cover Blackmore bonds, which was more bad news. If they purchased them with ISA money, they should seek assistance from their ISA provider. NPI served as the ISA firm for a certain series of bonds.
The legislation mandates that administrators examine issues such as purchases that undervalue assets or cheat investors.
While the inquiry was still in its infancy, Duff & Phelps said, “We have identified a considerable number of problems connected to the firm and the wider group that need further examination.”
These investigations may lead to the recovery of monies from other individuals or businesses associated with Blackmore’s activities.
What is Phillip Nunn upto lately?
Phillip Nunn is now providing his advising services to help people optimize their social media presence for professional objectives. Blackmore International (Korea), a newly founded corporation, has been tardy in submitting its registration documentation to Companies House.
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