Thoughts on Finance, Current Affairs and General Consumer Ripoffs - Damn Lies and Statistics

The administrators of LCF have issued their six monthly update on their progress . It's a lengthy document running to 50 pages so I thought it might be worth giving a summary of their findings and my thoughts on them so that bondholders have an idea of the key points made. As always with my blog these are my takeaways from the document, feel free to read it in full yourself if you want to confirm the details. The administrators have given an outline of their costs so far and the total they expect by January 2021. This total comes in at £7.2 million which is slightly lower than their previous estimate. It sounds a lot and obviously is but there is a huge amount of work to track down assets in a company that has apparently deliberately tried to disguise the destination of money received from bondholders. It seems clear from this report that the Administrators comments in February 2019 that the value of loans matched bondholder funds and assets in place were very wide of the ma...

The current status of Blackmore Bonds in a few facts. All put together it doesn't paint a very healthy picture of the company. Blackmore Bond raised over £25 million from investors Many of their developments have seen no work take place and are still building sites. 20% of investor funds were passed to Surge Financial at the point investors handed over money 60% of the GDV (Gross development value) was borrowed from banks for most sites. Bondholders rank after bank lenders in the case of insolvency Accounts for 2018 are overdue and Blackmore have broken the law by not providing them Accounts also overdue for Blackmore SPV development companies  Independent Chairman of Blackmore Bond, Kenneth Buzz West has left the Blackmore Interest payments delayed for August due to "bank issues" Interest payments failed to be paid for October 2019 and January 2020 There are only 12 development sites believed to be owned by Blackmore Annual payments from Blackmore Bond to B...

Northern Lights Surety Company SRL are the provider of insurance for Blackmore Bonds according to their paperwork. But who are Northern Lights Surety Company SRL and is there any way that they will pay investors in Blackmore Bonds the amounts that they are owed if the company goes bust? The address given for Northern Lights Surety Company SRL is as below: Northern Lights Surety Company SRL Plaza Roble Centro Corporative Plaza Roble San Jose Costa Rica

Blackmore Bond investors are rightly asking what happens next and how much money they might get back? As with London Capital & Finance it appears that many unsuitable investors put money into Blackmore Bond thinking that it was a low risk way to invest money. Sadly it was not - unregulated mini bonds are very high risk and should never be sold to retail investors especially ones that are led to believe that they are similar to cash. Blackmore Bond - How Much Money Will I Get Back? What Happens Next? In terms of how much money investors might get back it really depends what has happened to the company since the last accounts were filed in 2017. At the time of those accounts the company owed £7 million more than the value of its assets. Blackmore have delayed filing their accounts repeatedly and now have missed the date which was 27 December 2019 so are in breach of Companies House legal requirements. It gives an indication of the fate of the company when they have failed t...