A Supreme Court judge has ordered the winding up of managed investment schemes (MIS) operating under financial services firm Rubicon Asset Management (RAM).
RAM, which is in administration, is the responsible entity for the Rubicon America Trust (RAT), Rubicon Europe Trust I (RET I), Rubicon Europe Trust II (RET II), Rubicon Japan Trust (RJT) and Rubicon International Lenders Fund (Protected Series 1) (RILF).
In mid-August, the firm and its administrators, Michael Owen and Paul Billingham of Grant Thornton, sought orders in the Supreme Court of New South Wales to wind up all five schemes.
The decision to seek winding up orders comes as no acceptable offer to take over responsibility as responsibile entity of the schemes was found.
"Units in RAT, RET I, RET II and RJT have been suspended from trading for some months," Owen's notes to the court said.
"There is no reasonable likelihood that the suspensions will be lifted. Given the insolvency of the schemes, there is no reasonable likelihood that investors will recover anything of their investments.
"The continued management of the schemes is an ongoing burden, financial and otherwise, for RAM."
In response to Owen's evidence, Justice McDougall said it was appropriate that the schemes be wound up.
"So far as RAT, RET I and RET II are concerned, it is sufficient to note that in each case winding up is required by the scheme's constitution," he said.
"In each case, the scheme has terminated according to its terms. In each case, that having happened, the constitution requires the scheme to be wound up."
RAM was part of collapsed financial service group Allco Finance Group.
