Investors in collapsed overseas property firm Harlequin Property may not have valid claims against the company as the joint administrator reveals outstanding debts even without investor claims are expected to hit almost £90m.
Harlequin Property, the trading name of Harlequin Management Services (South East), is an unregulated firm that sold investments in luxury resorts in the Caribbean and elsewhere, with some clients investing through their Sipps. Shipleys was appointed as administrator of Harlequin in May.
In an administrators report sent to creditors last week, Shipleys says unsecured creditor claims are expected to reach £89.1m, of which £78m is due to related parties connected with Harlequin. An estimated £1m is owed to Harlequin sales staff in unpaid commission.
In his report, joint administrator Anthony Davidson says he has received “numerous” claims from Harlequin investors, but says: “For the purposes of this report, the joint administrators have not recognised these potential investor claims as the contractual relationship is between the investor and the overseas companies.
“The joint administrators are currently seeking legal advice in this matter.”
Harlequin declined to comment.