A SIPP provider, Green Oil Plantations, which raised in excess of £24m from private investors has gone into administration. Individual investors minimum buy-in was £10,000 and they were taking money between March 2010 and January 2013
The UK investment scheme invested in an Australian plantation that was supposed to produce 'green oil' ie biofuels.
The company experienced what it called "operational issues" with its first harvest and as such faced cash flow difficulties.
Simon Kirkhope and Chad Griffin of FTI Consulting have been appointed as joint administrators of Green Oil Plantations Limited and Green Oil Plantations (Australia) Limited.
Kirkhope, joint administrator, said, "Our priority is to maximise returns to investors and other creditors.
"We are working closely with the Financial Conduct Authority and the management of the plantation in Queensland, Australia to this end.
"We will be communicating further details to investors as soon as practicable."
These sort of investments are deemed to be high risk for UK investors. Especially in this case where it was, in effect, a start-up operation in a foreign country.
Blogged by Robert Moore