Slater and Gordon is investigating potential claims available to people who have lost money after investing in mini-bonds issued by Secured Energy Bonds and Providence Bonds, following their high profile collapse.

Our investigation is being conducted on a No Win No Fee basis, and mini-bond holders can register their interest in the investigation below:

Mini Bond Registration Form

 

Overview

Mini-bonds are a debt investment typically aimed at small investors. Mini-bond schemes seek a large number of small investors to loan funds to a company (the bond issuer). The bond issuer pools those funds and, after paying its own fees and overheads, invests the balance in another venture. Investors are promised regular interest payments, and their capital repaid at the end of a defined period.

In the case of Secured Energy Bonds, investors were told funds would be used to build solar energy products. In the case of Providence Bonds plc and Providence Bonds II, investors were told funds would be used in providing “factoring” loans that would assist small to medium businesses with cash flow requirements.

Investors in the three mini bonds were also told their investments would be guaranteed by the bond issuer’s parent company, and secured over the bond issuer’s assets by a charge given in favour of a Security Trustee.

The three mini-bond issuers raised approximately £15.6 million in aggregate from investors, but have been placed into administration prior to mini-bond’s repayment dates. Mini-bond investors stand to lose money, as:

  • the collapsed mini-bond issuers do not appear to have sufficient assets available to repay investors their capital or interest payments in full; and
  • none of the mini-bond issuers were regulated by the Financial Conduct Authority (FCA), and investors are unable to seek compensation from the mini-bond issuers through the Financial Ombudsman Service or the Financial Services Compensation Scheme.

Independent Portfolio Managers

Our investigations are focussed on potential claims that mini-bond investors might have against Independent Portfolio Managers (IPM), the Security Trustee appointed to look after the interests of holders of mini-bonds issued by Secured Energy Bonds- Providence Bonds plc and Providence Bonds II.

IPM is a UK company, which is authorised and regulated by the FCA. As Security Trustee, it was vested with security over the assets of the mini-bond issuers for the benefit of bondholders. It also reviewed and approved the Invitation Documents issued by all three mini-bond issuers. IPM was also a corporate director of Secured Energy Bonds.

Our investigations are also reviewing the legal avenues available to bondholders to pursue any viable claims for compensation from IPM.

Our Expertise

Slater and Gordon has a track record of successfully pursuing similar claims on behalf of large groups of people in the United Kingdom and Australia.

We have brought numerous class actions against the trustees of similar failed investment schemes in Australia, securing settlements in excess of £30m to date. We have represented thousands of small businesses and individuals across the United Kingdom who have been mis-sold interest-rate swap and other financial products.

Where possible, we try to aggregate the claims of many, either formally pursuant to relevant civil procedure rules, or informally through the use of internal systems, with a view to minimising the time and cost involved in pursuing claims relative to individual litigation.

If you would like to speak with one of the team please call 0800 884 0040 or fill out the enquiry form below:

Mini Bond Registration Form