MBI and Northern Powerhouse Developments

Malthusian

What's the plan if on 23 November they tell you they can't pay you until February?

Concerned_citizen_14

I assume you are aware mbi consulting limited has gone into administration....

joolsm1985

@bluequark

"I must add that I've also invested in another care home renovated by ex-MBI and have received two annual returns with no problem, so I'm still hopeful on this one.

If you (and others) are still interested in following up this problem, please send me a PM so we can explore constructive solutions with MBI/NPD."


Hi, relative to this - we invested in an MBi scheme called Walsden Care Village, and was later told that this would not be built.
We have been advised to transfer to another care home company - just wondering if this is the same as yours?
Would be great to hear from you - if you could send me a pvt message, that would be much appreciated.

Thanks,
Jools

joolsm1985

bluequark wrote: »

I'm in exactly the same situation as ashpan. I bought a care home unit off plan two years ago and was expecting completion and first returns in January 2019, as stipulated in the contract. As you explained in your post, development plans were changed and I was offered the same three options you described. I chose not to invest in one of the proposed NPD hotels but decided to wait until construction of the care home is finished, whereupon the developers have promised to buy back "my" room for 125% of the purchase price. My concern is that so far, I have no idea when construction will end or if it has even started.

I must add that I've also invested in another care home renovated by ex-MBI and have received two annual returns with no problem, so I'm still hopeful on this one.

If you (and others) are still interested in following up this problem, please send me a PM so we can explore constructive solutions with MBI/NPD.

Hi, relative to this - we invested in an MBi scheme called Walsden Care Village, and was later told that this would not be built.
We have been advised to transfer to another care home company - just wondering if this is the same as yours?
Would be great to hear from you - if you could send me a pvt message, that would be much appreciated.

Thanks,
Jools

Malthusian

The administrator's initial report into MBI Consulting (UK) Ltd doesn't make enjoyable reading for any MBI investor.

A total of £17.8m has been loaned to MBI Consulting (UK), mostly by its myriad sister MBI companies.

According to the directors' statement of assets, the only assets of any significance are £491k of book debts and £1.2m which has been loaned via the director's loan account.

The directors say that the company failed because of "significant sums being advanced to a former director and the Company's subsequent inability to recover the resulting loan account".

This can't be the whole story however, because even if the director in question paid every penny back, that would still leave MBI Consulting (UK) Limited short of £16m owed to creditors. Where's it gone?

There is only one "former director" of MBI Consulting (UK) Limited and that is Northern Powerhouse Developments chairman {Edited by Forum Team} , who was also the 60% majority shareholder of MBI Consulting (UK) Limited.

£18m has flowed into MBI Consulting (UK) Limited. £1.2 million was loaned to {Edited by Forum Team}via the director's loan account and the majority of the rest has simply disappeared. Doesn't look good.

The creditors of MBI Consulting (UK) Limited are other MBI companies, but you would assume the apparent disappearance of the money they loaned to MBI Consulting (UK) Limited will affect their ability to pay returns to investors.

For example, in respect of the "Walsden Care Village" that joolsm1985 refers to, there is a company called MBI Walsden Limited which lent £1.8 million to MBI Consulting (UK), which is now among the money that seems to have vanished from the list of assets provided by the directors.

Dimitra

Hi
Did you proceed with the investment? How is it going? I am also a woriied about to become hotel investor

Dimitra

You have described it so well!
I was interestd in the foxglove hotel now selling, unfortunately i have already sent the signed documents except the guarantee, the deposit of the 1000 pounds but not the full amount of money. I'm thinking of not proceeding but i don't know if now it is possible.

Malthusian

Dimitra wrote: »

You have described it so well!
I was interestd in the foxglove hotel now selling, unfortunately i have already sent the signed documents except the guarantee, the deposit of the 1000 pounds but not the full amount of money. I'm thinking of not proceeding but i don't know if now it is possible.

Yes, it's possible not to lose the rest of your money. Just don't send it to them.

The £1,000 is probably gone.

Dimitra

Hi
did you get your deposit back?
I have also given a deposit of 1000 pounds

Malthusian

Dimitra wrote: »

Do you have any ideas what should i do and if i can report it somewhere?

You can make a claim via the small claims court, but bear in mind there is a court fee of £60 (which you may never recover if the money is already gone) and you may have to attend court in the UK if the company contests it.

The cost of travelling from Greece to the UK suggests that writing off the £1,000 may be the only viable option.

Also, shouldn't the UK government do something about these schemes?

The UK Government does not care whether people lose their money in unregulated investment schemes. The idea that it does is dangerous, because it allows people to claim "if this was a scam the Government would have shut us down".

Even when they do something, it is usually years after people have already lost their money.

My suggestion is to focus on the tens of thousands of pounds you have probably saved yourself (or however much you were to invest) rather than the £1,000 you have probably lost.