Wine investment company, Encarta Fine Wines Ltd, has gone into liquidation with sums due to creditors estimated at between £3.5 to £3.8 million.
The creditors’ meeting, held today in Bexleyheath, London, confirmed Encarta has stock valued at around £1.7 million held at London City Bond, which is estimated to realise about £1.3 million if sold.
Encarta was set up in July 2009 with 35-year-old Dean Doughty and 39-year-old Matthew Hart as directors.
The liquidator, Nedim Ailyan of Abbott Fielding, told Decanter that the directors have blamed the collapse on their bank, HSBC, freezing their banking facilities for four months.
Ailyan said: ‘Because of concerns about the level of commodity fraud I believe that the Financial Conduct Authority has been asking banks to investigate commodity asset investment companies that might have suspicious transactions.
‘Although I have already seen this happen with companies selling other commodities, this is the first time this is said to have happened to a wine investment company.’
It is thought that Encarta’s banking facilities were frozen earlier this year and were then unfrozen once a four-month investigation was completed.
Separately, Abbott Fielding are also currently handling the liquidation of several other wine investment companies including Canary Wharf Vintners Ltd, which went into liquidation on July, 23.
Formed in May 2006 the company changed its name from Strategic Land Acquisitions Ltd in September 2010 to Canary Wharf Vintners. The sole director is 55-year-old Enver Deen.
Ailyan has told Decanter.com that the deficit is less than £500,000. The major creditor is an elderly woman, who is owed some £200,000.
Deen is currently offering wine investments as well as art, diamonds, land and metals through Belgravia Alternative Assets Ltd. He is the sole director.
Written by Jim Budd