HK has teamed up with Manchester-based firm, Barings Law, and Edinburgh-based firm, MBM Commercial, to launch an action on behalf of series one bondholders of the failed residential property company, Blackmore Bond PLC (“Blackmore”). Blackmore made headlines in 2021 for entering liquidation after raising several series of mini-bonds purchased by bondholders. The total value of the series one bondholders’ investments is approximately £18.7million and, to date, series one bondholders have not received a single penny in recovery of their investments.
The bonds were guaranteed by a Capital Guarantee Scheme which was held with the Costa-Rican based guarantor, ION Insurance Limited (“ION”). This guarantee was brokered by Lonsdale Insurance Brokers Limited (“Lonsdale”), a UK and international Lloyd’s of London broker and purported to indemnify the bondholders’ investments up to £75,000. Despite claims being made under the guarantee, ION has refused to make any payment. We believe that series one bondholders can pursue a professional negligence claim against Lonsdale in respect of its placing of the Capital Guarantee Scheme with ION.
Many series one bondholders invested in Blackmore using life savings, pensions, and money saved for future house deposits, educational needs and the care of elderly residents. These investments were made by honest, hard-working people who we allege have been failed by Lonsdale such that very material sums have been completely lost when they should have been insured. The three firms are committed to access to justice and, accordingly, have joined resources to self-fund the action on contingent terms in the interests of avoiding expensive litigation funding and to obtain a meaningful recovery for series one bondholders.
The firms are currently seeking to onboard clients to join the action. If you are a series one bondholder of Blackmore and wish to find out more about joining the claim, please see the claim’s website at www.blackmorebondclaims.com. We look forward to progressing this action with the goal of obtaining a positive result for series one bondholders after several years of disappointment.