With a Dunk Island redevelopment project in limbo and pressures from the corporate watchdog over allegedly misleading advertisements for its debenture products, Mayfair 101 now has another battle on its hands.
The trustee for Mayfair 101's $82 million IPO Wealth Fund, Vasco Trustees, has appointed receivers for the fund after two repayments were missed.
The AFR reports the repayments due were worth $3 million, and followed the freezing of redemptions for investors last month.
Mayfair 101 has described Vasco's measure as "premature and imprudent" given the current economic conditions imposed by COVID-19.
The group claims the receivership will likely lead to the "unfortunate and unnecessary destruction of value" for investors.
"Vasco Trustees Limited appointed receivers without the consultation of the Investment Manager, IPO Wealth Pty Ltd, and no attempts were made to understand the steps that are currently being undertaken by the Mayfair 101 Group to protect its investors and portfolio companies," Mayfair said in a statement.
"Despite contrary media reports, no attempts were made by Vasco to contact the Group in the week leading up to the appointment of receivers.
"Furthermore, no response was received to an email sent to Vasco's Managing Director, Mr Craig Dunstan, on Wednesday 20 May 2020 advising that the Group was working on initiatives with its various advisers regarding restructuring to improve liquidity for the benefit of the Fund's investors."
Mayfair says it has been working diligently and tirelessly through the unprecedented challenges that COVID-19 has presented.
"The recent overreaching actions of ASIC with respect to the advertising of Mayfair Platinum's two debenture products has also exacerbated the already challenging circumstances, and has contributed to Vasco's decision to appoint receivers which is now likely to result in the potential loss of value for the Fund's investors.
"The Group has been working with top-tier restructuring experts and its panel of advisers to assist with the preservation of value for the benefit of the Group's investors.
"It is therefore immensely disappointing that the IPO Wealth Fund's trustee has made this decision and compounded the already significant detrimental impact of ASIC's actions on the Group and its many loyal investors."Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
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