Following a relatively quiet couple of weeks for Harlequin Property investors, David Ames, Chairman of the beleaguered company has written to investors to update them on the latest position.
Mr Ames informed investors at the Open Days in April that he planned to restructure the group. The first step in that process seemed to be putting Harlequin Management Services (South East) which trades as Harlequin Property, into administration. Mr Ames has now written to investors with an update, the full text of which reads:
Letter from David Ames to Harlequin investors
Dear investors and agents,
It is nearly four weeks since I held the meetings in Basildon and Manchester in an effort to speak to as many of you as I could in person. I am pleased to report that we are seeing progress in a number of key areas which will help to secure your investments and ensure the future progression of construction and delivery.
Completions are progressing at pace on properties in Buccament Bay Resort and this is now driving new revenue into the company, which will assist in the short term operations.
I am aware that a number of you are still being affected by outstanding sums owed by Harlequin to you, for standing orders and cancellations. At this stage I am unable to say with certainty when we will be in a position to catch up and reinstate payments, but things are definitely moving in the right direction to enable this to happen. If completions continue to progress at Buccament Bay Resort, this will drive in excess of £20,000,000 back into the business and enable us to resume payments and further normal operations including construction works.
I have held many meetings over the past month with various financiers and brokers discussing possible restructuring options in order to enable the business and group of companies to be in the strongest possible position to access the considerable unencumbered asset base we have in the Caribbean and secure future financing for the delivery of your investments.
I would stress at this stage that we have not yet chosen one specific direction or restructuring mechanism, but that we are positioning ourselves to be able to make the most well informed and considered decision, one that will protect the best interests of all investors and facilitate an expedited construction schedule.
One of the companies we are working with, Eleven Capital, who I introduced during our open days, has been working with our legal team and Baker Clarke Accountants over the last four weeks to put together proposals and plans for a number of financial institutions. In the interest of maintaining increased levels of transparency with you, as I promised, please find attached a letter from Eleven Capital outlining some of their thoughts to date.
I will send a further update in the coming weeks but, in the meantime, ask you all, once again, to continue to support our endeavours and trust that I am working diligently to secure the future of the company and your investments.
Are you a Harlequin Property investor?
If you are a Harlequin Property investor you will naturally be concerned about the recent developments. The investors we have spoken to have had mixed emotions, however all have wanted to take some form of action.
We would recommend that Harlequin investors continue to monitor the situation whilst completing the Harlequin Property Serious Fraud Office questionnaire, which can be found by clicking here and also visit the website set up by Regulatory Legal: www.harlequininvestorgroup.co.uk for more news.