Investors have rejected a rescue plan from overseas developer Harlequin Property that calls for them to top-up £400 million already ploughed into the firm.
Harlequin developed luxury hotels and resorts and picked up millions from investors, with much coming from self-invested personal pensions (SiPPs).
The company provided off-plan investments which were sold mainly through independent financial advisers.
In recent months, the company has gone into administration as lawyers and finance advisers look at rescue plans.
The firm has proposed another company, Eleven Capital, would supervise Harlequin’s management and developments – but called for more cash from investors.
The 1,100 strong Harlequin Investor Group firmly kicked that idea into touch and has formulated a counter-proposal.
The group’s solicitors emailed an outline proposing the investor assets would be transferred to a trust that controlled an operating company to wind-down Harlequin Property.
In a statement, Harlequin said: “A restructuring process is currently underway and experts have been retained to assist with this.
“The company is focused on the best representation of investors, from whom it appreciates overwhelming support”.
“The company is talking to a number of potential lenders and critically assessing their ability to provide suitable financing. As with any potential lender or institution, no commercially sensitive information would be released until that potential lender satisfies a number of prerequisites.
“Harlequin is aware of an approach to Eleven Capital, which is being considered, along with other financing options in accordance with standard corporate governance procedures.”
Harlequin Property mainly built in the Caribbean, but reportedly, about 300 of 6,000 properties are complete, prompting many investors to request their money back.
Director David Ames confirms Harlequin property has financial problems, but also explained Harlequin Group, which runs hotels, had no money issues and was continuing to trade.
“I feel really upset as I know I haven’t done anything wrong and that’s what really frustrates me against these people,” Ames has told the media. “We have spent so much time on fire-fighting all these problems and actually it’s very difficult to concentrate on the core business.”
One of Harlequin Group’s headline developments is the Buccament Bay Resort, billed as the top spa resort in St Vincent and The Grenadines in 2012.
Regulatory Legal Solicitors act for the Harlequin Investor Group. The lawyers have set up a web site where disgruntled investors can sign up for advice about the dispute with the company.
Click here to go to the web site http://harlequininvestorgroup.co.uk/