PRESS RELEASE 29 August 2007
R2R Bulgaria Property Fund
R2R Croatia Property Fund and
R2i Montenegro Property Fund
(referred to together as “the Funds”)
This press release is issued further to the notice, to investors in the Funds, published in the Jersey Gazette on 28 August 2007, a copy of which is attached.
The Commission has the power under Article 34(5) of the Collective Investment Funds (Jersey) Law 1988 (“the Law”) to apply to the Royal Court for the removal and replacement of a functionary of a collective investment fund and for an order that the fund be wound up. This power is only available when the Commission considers that such action is in the best interests of participants or potential participants of a fund or where a functionary has failed to comply with any provision of a permit granted.
On 9 August 2007, the Commission determined that it should exercise the power referred to above to seek the removal of Equity Trust (Jersey) Limited and Equity Trust Services Limited (referred to together as “Equity”) from their roles as functionaries of the Funds.
A Representation by the Commission was filed with the Royal Court on 17 August 2007. It is anticipated that this Representation will be heard on 28 September 2007. Evidence from interested parties must be filed with the Court and provided to the Commission’s Jersey lawyers, Walkers, by 6 September 2007.
Investors in the Funds have been provided with notice of the hearing date and have been given a detailed summary of the matters contained in the Representation.
In the course of the last six weeks the Commission has met with Equity in their capacity as trustee and manager of the Funds, with Craig Cameron of Burlington Associates as co-promoter, and with BDO Alto in their capacity as consultant to the Funds. The Commission explained that, in its opinion, the state of the Funds met the criteria in Article 34(5) of the Law for the Commission to make an application to the Royal Court. However, the Commission also indicated that it was prepared not to take this course of action if proper information could be provided to investors in the course of seeking their consent to a reconstruction plan, which was being proposed. The conditions determined by the Commission were that:
a) audited accounts for the Funds should be produced;
b) full and frank disclosure to investors of the problems in the overall structure and of the details and implications of the reconstruction plan; and
c) Equity seek consent from the investors in the Funds and lenders to two factoring services trusts to adopt the reconstruction proposals and provide an exit route for those who did not consent.
Unfortunately, these conditions were not met to the Commission’s satisfaction and the application was issued.
- Ends -
For further information please contact: -
Jersey Financial Services Commission
Tel: + 44 (0) 1534 822011
Fax: + 44 (0) 1534 822001
NOTICE TO INVESTORS
Pursuant to Article 34(5) of the Collective Investment Funds (Jersey) Law 1988, as amended
Notice is hereby given to investors in the R2R Bulgaria Property Fund, the R2R Croatia Property Fund and the R2i Montenegro Property Fund, in respect of which Equity Trust (Jersey) Limited and Equity Trust Services Limited act as functionaries, that the Jersey Financial Services Commission have represented to the Royal Court of Jersey that the said functionaries should be removed and replaced and that the said funds should be wound up.
AND TAKE FURTHER NOTICE
That the hearing of the said Representation brought by the Jersey Financial Services Commission shall take place before the Royal Court of Jersey at 10.00 am on 28 September 2007.
Investors who wish to obtain further details and a copy of the Representation brought by the Jersey Financial Services Commission should contact the Commission in writing at: 14 – 18 Castle Street, St. Helier, Jersey, JE4 8TP.