Sale of Blackmore assets ‘not enough’ to repay mini-bond investors 

Investors in bust mini-bond seller Blackmore Bond have been warned by administrators that sales of the company’s property has not generated enough money to pay them back.

Blackmore raised money from ordinary investors by issuing mini-bonds, with the aim of using the money to build houses and paying investors back with house sales. 

It started to run into cash flow problems in 2019 and administrators from Duff and Phelps were appointed in April this year. 

Administrators say that eight of the company’s 11 property developments have now been sold but there is little money left over once third-party loans are taken into account. 

They added: “The joint administrators are now of the view that any recoveries made from the property interests will be insufficient to enable a distribution to creditors after taking account of the costs of administration.”