The Perils of Crowdfunding
2 / 1 / 2018
Darragh Connell considers the recent High Court decision, Re BBH Property 1 Ltd & Ors  EWHC 2584. Roth J appointed the Official Receiver as the provisional liquidator of 13 separate companies where it was likely they would be wound up in the public interest.
The companies in question were involved in one of two projects. Prospective investors were provided with various representations. On the front page of its investment brochure, BBH Property 1 Ltd characterised the UK project as “a spectacular investment secured by a spectacular asset”.
However, security was not put in place and the investors’ monies were dissipated without the companies acquiring the properties.
The Secretary of State presented petitions to wind up the companies on the basis that it was expedient in the public interest to do so (s.124A IA 1986). The Court exercised its jurisdiction under s.135 to appoint a provisional liquidator.
This article was first published by Sweet & Maxwell, Provisional Liquidation in the Public Interest and the Perils of Crowdfunding “a spectacular investment” (2017) 30 Insolvency Intelligence, Issue 8 at p.129 and is reproduced by agreement with the Publishers.