The corporate watchdog has launched High Court cases against two entities related to Blackbee, the failed €180 million Cork-based fund.
Legal cases were filed by the Corporate Enforcement Authority (CEA) against City Quarter Capital II Public Limited Company and Blackbee Group Holdings Limited late last month.
Under its statutory remit, the CEA can bring High Court proceedings where it seeks to appoint inspectors to investigate a company’s affairs. It declined to comment on the nature of these cases, citing its obligation of confidentiality. It comes as City Quarter II, a Blackbee investment vehicle, separately, faces a winding-up application which is due before the High Court next week.
Tom Finneran, who invested €300,000 in a BlackBee social housing project in March 2021, requested that the court appoint KPMG and Friel Stafford, the Dublin financial services firm, as liquidators of City Quarter II on the basis that it was unable to repay its debts.
Maybe now we can find out exactly where the funds went as all that is coming from Blackbee is radio silence.Today's Business Post:
Maybe now we can find out exactly where the funds went as all that is coming from Blackbee is radio silence.
Well I got a detailed letter from the Joint Official Liquidators (JOLs) of Blackbee Investments this morning but I'm not really very much wiser where things are at, given the labyrinth of investment products that have been steered through City Quarter Capital II PLC. One fascinating detail is that, a full 13 months after their appointment, the JOLs are still ploughing their way through the Blackbee Creditors Ledgers. (Reading between the lines, it appears to me that David O'Shea is providing the minimum level of cooperation.)
It's important to point out that Blackbee Alternatives (which is where some of us poor suckers invested our life savings on the advice of our commission-driven financial advisors) is not being liquidated. So we can all sleep easy in our beds in the knowledge that O'Shea is continuing to manage our funds in these unregulated investments with his normal level of competence.
Anonymous and unsolicited bank statements for a Blackbee investment vehicle were delivered to liquidators of the failed €180 million Cork-based fund, the High Court has been told. In an affidavit sworn to support a winding up petition of City Quarter II, Colin Farquharson of EY, the joint liquidator, said bank statements for City Quarter Capital II, which cover a six year period, were anonymously delivered to him in recent weeks.
Arising from these, he highlighted issues which merited further investigation.
These included a payment of over €2.8 million which he said was transferred within 10 days of receiving a €3 million loan to settle “unrelated liabilities”, including to Blackbee founder David O’Shea, a relative of O’Shea’s and another company.
Last year, Farquharson and Luke Charleton, also of EY, were appointed liquidators of Blackbee Investments, a regulated entity. They are now seeking to be substituted as the petitioners in a winding up petition for City Quarter, which allegedly acted as the issuer of bonds and lent on proceeds to a special purpose vehicle (SPV) for investment in real estate or other assets. Farquharson said the €2.8 million in transfers required “urgent investigation” because a receiver had been appointed over the underlying asset – a Blackrock property – and it had sale agreed status.
Another issue highlighted by the bank statements concerned whether any payments made from the sale of properties purchased with social housing bonds were transferred to investors. Farquharson further alleged that over €16 million was transferred from City Quarter to O’Shea, BBGH, and Blackbee Holdings Limited from 2020 to 2024. ...........................................................................................
................................ Since being appointed by the High Court last May, the joint liquidators alleged that they have experienced difficulty in access to Blackbee’s books and records, which they allege O’Shea has refused to provide.
The troubles facing David O’Shea, founder of BlackBee Investments and BlackBee Alternatives, continue to mount. An investor in bonds issued by BlackBee Group has opened a High Court case against the Cork financier and firms associated with him.
Two investors told The Sunday Times last week that they were considering legal action over what they claim is a lack of information from BlackBee Alternatives and a failure to return their money.
What’s the buzz about BlackBee Group’s property bonds?
Investors in offices, nursing homes and social housing schemes are seeking urgent answers as to where their money iswww.thetimes.com
Behind pay wall.
They said in the last update they provided back in April 2024 that the bond would be repaid in a number of weeks.From above article: “O’Shea said he expected the social housing bonds “will mature within the next six months”.
We’re sure this social housing bond hasn’t been completed?
That being said, I’ll believe it, when I see it.
Sunday Times had big article on them .Thanks for your replies guys ,,,it has clarified a lot of things for me.
Anybody have a copy of the times article?
Thanks, is there a link to that update by any chance?Liquidator has been appointed to black bee alternatives
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