Mayfair 101 has appointed Barry Wight, Darryl Kirk and Rachel Burdett of Cor Cordis as voluntary administrators to “protect the IPO Wealth Fund investors from the liquidation of assets”.
“The decision to undergo a voluntary administration process is centred on providing IPO Wealth’s investors with the opportunity to convene a unitholder meeting and vote on a proposal from the Mayfair 101 Group to restore monthly distributions and facilitate redemptions in a timely manner, preserving the value for our investors,” a spokesperson for Mayfair 101 said. “Nearly 70 per cent of our investors have already shown their support for calling a unitholder meeting.”
The announcement comes after news that trustee Vasco had appointed receivers from Dye & Co to the IPO Wealth Fund after it missed two repayments totalling $3 million.
“We have been appointed as [voluntary administrators] of the company by James Mawhinney, a director of the company, as a result of concerns held by him on the solvency of the company and his view of a risk of a fire sale of assets by the receiver appointed by the IPO Wealth Fund’s trustee that could affect investor positions,” said Mr Kirk. “The voluntary administration process provides an opportunity for the assets of the company to be preserved while restructuring options are canvassed.
“We will also be undertaking a thorough investigation into the company’s asset holdings and use of funds.”
Mayfair has previously said that IPO Wealth missed repayments due to market volatility and an ASIC court case over its advertising.
“In this environment, a facility falling into arrears by a marginal factor is not uncommon and is no justification for calling in receivers,” Mayfair said in prior a statement in which it also said it had a “near-perfect track record” of meeting income distributions and redemptions. “The harmful steps taken by ASIC with respect to the [group’s] advertising [have] evidently been a key driver for Vasco’s decision to appoint receivers, at a time when support for Australian businesses is needed most.”
