EXCLUSIVE: The man looking after the liquidation of the British company Ecohouse Developments Limited has admitted to being frustrated, and that his investigations into the collapse of the company are “fraught with difficulties.”
Speaking exclusively to PropertyGuru Group from London David Chubb, partner of the company appointed by its creditors, PricewaterhouseCoopers LLC, explained that when he was appointed to handle the affairs of the British company, it was in conjunction with CPC Worldwide Limited who were coordinating an investigation of the Escrow agent. We needed ensure that if information was required to assist the investigation, there was a liquidator in place who could assist, he said.
“The lack of funding necessitated that the role of the liquidator would be very limited, and it was not the intention that we would lead an investigation but that is what we are now doing.”
Chubb was appointed in January 2015 it was on the understanding that creditors would be raising funds for his investigations. That has not happened to the extent needed, he said.
“How much is raised will influence what can be done,” he added.
Almost all Southeast Asian investors in the Brazilian social housing development have contracts with the Brazil company, which Chubb is not handling, and which itself is believed to still be the subject of a federal police investigation.
Chubb has had almost no contact with that company, although his team includes a Brazilian lawyer with knowledge of the South American operation on his creditors committee, and therefore can provide the connectivity needed with Brazil
His pressing mission is to gain entry and investigate the ESCROW agents that handled transactions in the United Kingdom.
“It’s taken longer than I would have liked but I am hopeful I will be able to gain the access I need relatively soon,” he added.
In his discussion with the single remaining company director, he was not provided with any details of the business plan or financial projections, and that raises questions about the viability of the schemes.
Chubb added that one other company, EcoHouse Group Developments Limited is also in liquidation but it being handled by the Government’s Official Receiver as it appears there is no money in that company. That company did not have any direct involvement with investors so is of limited interest.
PropertyGuru Group understands that more than 1,200 EcoHouse investments were sold in Southeast Asia alone including Singapore, Malaysia and Thailand, and in addition to sales in other parts of the world including Hong Kong, China, the Middle East, Europe, the United Kingdom and North America the number could be as high as 1,500 individual investments.
They were lured by promises of returns of, in some cases, more than 20 percent with 12 months along with the return of their capital. Many investors are known to have joined together to invest in one of the $S48,000 social housing homes under the Minha Casa Minha Vida Brazilian government project.
Chubb concluded by adding that his only concern is with the British companies, and he can only deal with enquiries from creditors relating to those companies – and not creditors who have contracts with companies in Brazil.
Investors from Southeast Asia are urged to check which company their sales and purchase contracts are with prior to attempting to contact any legal company currently handling legal affairs.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
