Mini-bond provider Blackmore Bond has gone into administration, following pressure from bondholders that had not received repayments.
Blackmore was founded in Manchester in 2016 issuing mini-bonds to retail investors with a minimum £5,000 investment.
Blackmore invested the money it raised in a portfolio of property development projects, via special purpose vehicles. It is understood that the value of the outstanding bonds totals around £45m.
Bondholders have not received their contractual quarterly coupon payment since October 2019 despite assurances from the directors throughout 2020 that the situation would be resolved.
A representative bondholder recently took the step to issue a winding up petition against Blackmore.
Having become aware of the winding up petition and with increasing concern about activities affecting the interests of the bondholders, the security trustee took steps to appoint Duff & Phelps’ Geoff Bouchier and Benjamin Wiles as joint administrators.
“There has been concern regarding the company’s affairs for several months so it will be a relief for bondholders that independent professionals have now been appointed to the company,” said Bouchier.
“We are immediately undertaking a review of the properties and will immediately commence an investigation into the company financial position.”
Blackmore Bond is the latest mini-bond provider to go into administration, following Basset & Gold at the start of April. Basset & Gold had put the majority of investors’ funds into payday lender Uncle Buck, which collapsed the previous week.
All enquiries about Blackmore should be directed to blackmorebond@DuffandPhelps.com.