Unsecured creditors are set to receive nothing following the collapse of a claims management company which 'crowdfunded' to stay alive.
The Rebus Group, which acted for clients who had lost money in tax avoidance schemes, went into administration in February.
The company was propped up through capital raised last year through the website CrowdCube, attracting 109 people to commit a total of £816,790.
Those investors are believed to have been told they will not recoup any of their money, and a statement of joint administrators’ proposals, published this week at Companies House, confirms the same fate for unsecured creditors.
The firm was founded in December 2008 to help investors determine failings in expert advice and find ways of seeking redress.
Rebus employed 15 staff from an office in Lincoln's Inn Fields, London, making income from clients who suffered losses from negligent financial advice and claimed from their advisers' indemnity insurers.
The firm charged an initial fee to clients and shared a percentage of any successful recoveries.
But by May 2014 further revenue was needed: potential investors were not forthcoming and so the directors sought to raise capital through the crowdfunding scheme.
But by January 2016 the firm had lost more than £863,000 in the previous 12 months and trading was halted. Administrators were appointed soon after.
The company’s finances were such that just preferential creditors, former employees owed money for unpaid wages and holiday pay, can be reimbursed. Around £51,000 has been allocated to paying these claims.
Based on company records, unsecured creditors' claims are estimated at £740,746, of which 18 claims have been made coming to £230,028.
The majority of unsecured claims are from trade creditors, which include solicitor firms and barristers' chambers, with HM Revenue and Customs also owed more than £55,000.
It is confirmed in the statement there will not be sufficient funds to make any distribution to unsecured creditors.
Just £573 was received from Rebus Investment Solutions’ bank account before administration. A £12,000 profit was made since administration from a successful claim on behalf of a client.
The administrator, ReSolve Partners Limited, said its total costs will be £150,161, based on the average charge-out rate of £373 an hour.