Investors are owed more than €13m in outstanding loan repayments by Tower Trade (Ireland) Limited, currently in Examinership.
The Examiner found in his report that the company’s decision to concentrate investment in the former kit supplier of the FAI was “at best unwise and could be characterised as irresponsible”. The company raised funds by issuing unregulated loan notes to investors. The funds raised were used by the company to provide supply chain finance to client companies.
The Examiner’s report also noted that a draft scheme of arrangement indicates that creditors would receive an overall dividend of 28% in an examinership and 23% in a liquidation.
The investment promised a 5% annual coupon paid quarterly, 20% total return over four years and was described as “Low risk, 100% of assets insured”
Investors face substantial losses and have no recourse to the Central Bank-run Investor Compensation Scheme as these loan notes are not regulated products. Investors could have potential recourse against their brokers if there was any negligence or mis-selling involved.
Lavelle Partners are currently advising certain investors in respect of these matters.
If you believe that you have been miss-sold a financial product, please contact Partner and specialist in professional negligence claims against financial advisors and investment disputes, Ciarán Leavy, at 01 644 5800 or cleavy@lavellepartners.ie.
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