Luxembourg Court grants liquidation of SLS and LSC
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The Luxembourg District Court has ordered the liquidation and winding-up of SLS Capital and Life Settlements Capital.
Around 5,500 clients of Keydata invested £103m in Luxembourg-incorporated SLS Capital through its secure income bonds. Administrator PricewaterhouseCoopers discovered information last year that suggested underlying assets had been liquidated and may have been misappropriated.
Maître Yann Baden of Baden and Baden has been appointed as liquidator tasked with the responsibility of recovering any remaining assets and pursuing any claims on behalf of the companies or its creditors/investors.
According to an update from Baden and Baden today there does not appear to be any remaining assets.
It says: “As the situation of SLS and LSC is a complex one, the liquidator’s first duty must be to gather all available facts and information while cooperating with judicial and criminal authorities both in Luxembourg and abroad. This process is ongoing.”
In February, Money Marketing reported that Brunei based insurer Orion Life chief executive Bruno Geissmann had been told by David Elias, the man at the heart of the Keydata fraud probe, that some life settlement assets had been sold to purchase thousands of acres of Brazilian rainforest.
The pair met in March last year, two months before Elias’ death, to discuss Orion’s direct investments into SLS Capital SA and Life Settlements Capital SA, another of Elias’ companies and why interest payments from the vehicles had stopped in late 2008.
A criminal investigation has been opened by the Luxembourg public prosecutor’s office.
Baden and Baden has invited all investors and bondholders who have not done so already to file their interest through its website.
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