It’s reported that residential property developer Blackmore has missed a third interest payment deadline on its minibond, raising fears about the safety of more than 2,000 investors’ money.
The company, which is understood to have raised more than £25 million from the retail market for the unregulated investment, again failed to make its quarterly coupon payment at the end of December, according to the Times.
The minibond was due to pay interest at the end of October, but postponed this deadline first to November and then until December. It was also late paying the July coupon, blaming sluggish property sales.
The minibond’s apparent financial difficulties will be a huge cause for concern among its investors after two minibond issuers collapsed in 2019. London Capital Finance (LCF) fell into administration in March, and Asset Life collapsed in August after raising more than £8 million.
These issues finally prompted the FCA to ban the marketing of the products to retail investors in November, following stinging crisis of the regulator’s handling of the LCF debacle, including a Treasury enquiry.
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