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IFAs fear Eurolife rescue plan has collapsed

IFAs fear that a rescue plan for Eurolife secured bond holders has collapsed, leaving investors more than 15m out of pocket.

About 2,300 investors in the secured bond have been left in the dark over a restructuring proposal with Eurolife Assurance that could have retrieved some of the 15m they lost when the bond matured on Sunday.

The bond was a structured debt lent to Eurolife Assurance through subsidiary company Eurolife Capital Funding. Last year, Eurolife admitted that the firm could not repay the debt.

Investors were promised that a restructuring plan being thrashed out by Eurolife director David Wootton would rel-ease some money, possibly by selling the firm’s life insurance arm to Royal Liver Assurance.

Three days after the deal was expected to be announced, letters had still not been dispatched and investors were in the dark over whether they would get any cash back.

Eurolife sister company Nvesta director Graham Devile has been left to face the music while Eurolife investors await news of the restructuring plan.

He says: “Our staff and our company was not in existence when this bond was sold. When we know about the res-tructuring plan, it will be ann-ounced to investors. That is all that we can say to them.”

Whitechurch Securities inv-estment director Gavin Haynes says: “You hear that the deal might have collapsed and you hope for the sake of investors that it has not. If the company folds, that would be very bad for the industry and for structured products and ext-remely bad for investors.

“You would hope that they would be fighting to keep the deal alive in order to keep the company alive.”

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