Restructuring advisory firm Cor Cordis has been appointed as the voluntary administrator of Mayfair 101's IPO Wealth Holdings.
The move follows the appointment of receivers to IPO Wealth in May by Vasco Trustees after two repayments were missed.
The AFR reported that these missed repayments were worth $3 million and followed the freezing of redemptions for investors last month.
Mayfair 101, the group behind a $1.6 billion redevelopment in Dunk Island in Far North Queensland, says the decision to appoint voluntary administrators was made in order to protect IPO Wealth Fund investors from the liquidation of the assets held by IPO Wealth and its subsidiaries.
"The decision to undergo a voluntary administration process is centred on providing IPO Wealth's investors with the opportunity to convene a unitholder meeting and vote on a proposal from the Mayfair 101 Group to restore monthly distributions and facilitate redemptions in a timely manner, preserving the value for our investors," says a Mayfair 101 spokesperson.
"Nearly 70 per cent of our investors have already shown their support for calling a unitholder meeting."
Cor Cordis partner Darryl Kirk says his firm was appointed by Mayfair 101 founder and managing director James Mawhinney (pictured) to protect investors from a "fire sale" of IPO Wealth assets.
"We have been appointed as voluntary administrators of the company by James Mawhinney, a Director of the company as a result of concerns held by him on the solvency of the company and his view of a risk of a fire sale of assets by the receiver appointed by the IPO Wealth Fund's trustee that could affect investor positions," says Kirk.
"The voluntary administration process provides an opportunity for the assets of the company to be preserved while restructuring options are canvassed. We will also be undertaking a thorough investigation into the company's asset holdings and use of funds."
Earlier this month Mayfair 101 called for an urgent meeting of IPO Wealth Fund unitholders to discuss its future.
Mayfair 101 claimed a detailed assessment submitted by the trustee for the fund Vasco Trustees contained statements which would be "vigorously challenged".
"Every allegation made in the receiver's report and various affidavits can and will be answered in full," said Mawhinney.
"We take these allegations very seriously and will continue to defend our position."
Mayfair 101 was also recently restrained from promoting its debenture products by the Australian Securities and Investment Commission (ASIC) after allegedly producing misleading and deceptive online advertisements.
At the time, Mayfair 101 said the ASIC action had the potential to derail its $1.6 billion redevelopment project at Dunk Island.
Business News Australia