Investors of Finchley Central Funds Management (Finchley) are unlikely to see more than minimal returns, as the clean up of two investment funds linked to the failed financial services group continues.
In a letter to investors dated 8 September 2010, Finchley’s liquidator, Jennifer Low of Sheridans Chartered Accountants, said the outcome for investors in The Gilead Trust and The Riverside Trust remains uncertain.
Low said discussions initiated in July 2010 with a potential new financier for The Gilead Trust, and Sunrise Community Living Pty Ltd and its associated companies (Viceroy), had fallen through, with ING agreeing to fund the project on a limited basis.
“Viceroy, in the meantime, is still seeking a new financier and restructure of the project,” she said.
“I remain of the opinion that in all likelihood only a minimal return, if anything, will be obtained for the Finchley investors.”
Low said a mediation session held earlier this year between parties interested in the Riverside Trust project failed to resolve disputes, and as a result, a sale process of the project is now underway through CB Richard Ellis.
“Significant interest has already been shown in the development and the sales agent is confident of a sale,” Low said.
“Depending on the outcome of the sale process, there is a possibility of a small return to Finchley investors. Any return is very uncertain and likely to be minimal.”
Meanwhile, Low is waiting for a response from ASIC regarding funding of potential investigations into the actions of Finchley directors.
“I am hopeful that I will receive some funding from ASIC to carry out more extensive investigations,” she said.
“If I do receive funding, I would expect that my investigations could take up to nine months to complete.”
In March this year, Low said the firm’s investigations had found the directors of Finchley had allowed the company, as the responsible entity, to breach the Corporations Act numerous times.
Finchley is the responsible entity of the registered managed investment scheme Finchley Development Capital Funds (FDCF), which has two active trusts – The Gilead Trust and The Riverside Trust.
Sheridans Chartered Accountants was appointed official liquidator of Finchley on 22 September 2009.
