LCF Trustees Acting Against Bondholders

By J Drew -
The London Capital & Finance saga took another bizarre twist this week with the trustees called Global Security Trustees (GST) that are supposed to be protecting the bondholders interests (as they hold a debenture in favour of bondholders) voting against the proposals to form a creditors committee.

You may remember from previous blog posts that there were some strange goings on with GST. The trustees had been sold to a company based in Malta but are now run from the UK again. The directors of GST have yet again changed and are now Jeremy Friedlander, Stephen Gill and Mark Pollard. Jeremy Friedlander is also one of the shareholders of GST.

LCF Trustees Acting Against Bondholders
LCF Trustees Acting Against Bondholders
In another twist GST claimed to be representing holders £57 million of bonds. It's not clear how they were able to do that when they have no assets themselves other than £100 but I suspect they were able to engineer proxy votes for chunks of investors. It could even be that somewhere in the LCF deeds gives GST a block vote which could give them control.

They have given no indications why they chose to vote against the formation of the creditor's committee.

You can read more about Global Security Trustees here and the sale to Oracle Limited based in Malta

Bondholders were sold the LCF products based on a security trustee that was there to look after their interests. It doesn't appear to be that way now


Comments

  1. Gary Bullivant1 May 2019 at 10:48

    I think it's quite interesting to note the link between Jeremy Friedlander and Brett Evan Stacey.
    https://www.investegate.co.uk/carbondesk-group-plc--co2p-/prn/issue-of-warrants/20091113070000P61A2/

    Stacey was a founder shareholder in London Oil & Gas together with the London Group who swapped his shares for shares in London Power Corporation Limited (Companies House say both are now in administration). Friedlander appointed Gill and Pollard at GST.

    ReplyDelete

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