Harewood Associates update: SPV investors given cold shoulder, FCA-kitemarked reboot disappears

The administrators of Harewood Associates have released their latest report.

£2.8 million owed by another Kiely-owned company, Lansdown Investment Management, has now been fully repaid.

The administrators are however still expecting only 7p in the pound to be paid to Harewood Associate's £32 million worth of unsecured creditors.

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Harewoods administrator revises expected losses from 84% to 93%

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The administrators of collapsed unregulated property investment scheme Harewood Associates have released their latest update.

Harewood Associates raised £32m by advertising bonds and preference shares directly to investors. The scheme collapsed into administration in June.

In their initial report, the administrators wrote off £36 million of the £40 million which Harewood Associates lent to linked companies, including £17 million loaned to Harewood Venture Capital and £19 million loaned to Sherwood Homes.

The administrators have now also written off a further £1.2 million from the "Equiscale" investment and £1 million owned by a company called Southworth Construction (owned by a James Cuniff).

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Harewood Associates administrators report: £40 million loaned to related parties, at most £4.2 million remains

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The administrators of collapsed unregulated property investment scheme Harewood Associates, Begbies Traynor, have released their first report.

Subsequent to the report, Harewood director Peter Kiely has signed a Statement of Affairs detailing how much of the company's assets remain to be realised to investors.

According to the Statement of Affairs, Harewood loaned a total of £40.5 million to other related companies.

Of this, only £3.9 million is expected to be realised.

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Harewood investors told to expect at least 84% losses

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The Telegraph reports that investors in Harewood Associates have been told by the administrators, Begbies Traynor, to expect at least 84% losses, with a possibility of total loss.

A spokesman for Begbies Traynor, the administrators, said: “The proposals issued to creditors anticipate a range of returns between nil and 16p in the pound. The return is subject to realisations of debts due from associated companies.”

With the amount left in these associated companies unknown, the standard rule for investors in collapsed unregulated investment applies; expect nothing and treat any recovery as a bonus.

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Harewood Associates goes into administration owing £32.7 million

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Harewood Associates offered unregulated investments in property from 2010 onwards. From at least 2013 the company offered unregulated loan notes, with typical rates of up to 12% per year.

Last week Harewood went into administration, with Begbies Traynor appointed as administrators. The administration is not yet visible on Companies House but has been publicly announced by Begbies Traynor.

According to Harewood Associates' last accounts for December 2018, the company owed £32.8 million at that time. If accurate, this makes Harewood the second biggest collapse of a company issuing unregulated bonds directly to the public in 2019, beating MJS Capital's £20 - 30 million (though dwarfed by the £230 million of London Capital & Finance).

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