Octopus has partly deferred payment on one of its Protected EIS scheme tranches which has investments linked to Glasgow Rangers FC.
The Octopus Protected EIS invests in Ticketus, a London-based firm that provided Rangers with working capital in exchange for future season ticket sales. Rangers went into administration in February and administrators are still trying to account for proceeds paid from Ticketus to Rangers.
The Octopus Protected EIS scheme tranche seven matured in November and payments on the money invested in Rangers have been deferred.
Investors have been given the option to retain their investment, transfer into a new product or exit the scheme.
Under the transfer option, the part of the portfolio not invested in Rangers will be transferred into a new product.
Exiting investors will have their money paid back, minus the amount invested in Rangers.
Money Marketing understands that up to 20 per cent was invested in Ticketus in each of the four tranches of the Protected EIS scheme affected.
Octopus says the deferred payment is dependent upon what recovery Ticketus is able to achieve, which remains uncertain at present.
The other three tranches will have the same options communicated to investors as they approach the three-year qualifying period early next year.
Octopus managing director Paul Latham says: “We will not take our 2 per cent management fee unless we can return the full amount invested.”
AWD Chase De Vere head of communications Patrick Connolly says: “There may not be a significant recovery of the money owed, so the deferral and ability to move on is the right approach for investors.”