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: -
John Harris
Director General
Jersey Financial Services Commission
Tel: + 44 (0) 1534 822011
Fax: + 44 (0) 1534 822001
Email: s.cadigan@jerseyfsc.org
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.
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