Harlequin has confirmed it is now working with Regulatory Legal Solicitors, which represents an investor group and a number of individual investors in the firm, to explore restructuring options for the stricken firm.
The embattled property investment firm is now in advanced discussions with the law firm to work towards securing a plan to “protect the future of Harlequin and its investors”.
The joint update to investors from Harlequin and Regulatory Legal states that the final plan will give investors transparency and a greater say on how funds are raised and spent on construction.
Once the plan is agreed and implemented, it is envisaged that the main source of funds for construction will be monies from “completions and external finance”. In order for this to happen, investors and financiers need to feel confident in the future of Harlequin, the update adds.
The update said: “Whilst it is fair to say that the parties have not always seen eye to eye in recent months, it is clear that the parties acknowledge that conflict is counterproductive and seek to avoid such conflict.
“The intention to achieve the best outcome for investors has to be the priority. Therefore, all investors need to be focused on a sensible solution which deals with all types of investors.
“Harlequin is confident that the final plan will satisfy investor requirements and provide investors with long term security moving forwards. Once all of the details have been agreed, the plan will be presented jointly at investor meetings.
“By the end of July, we aim to publish the dates of these meetings.”
In April, following several months of speculation into the firm’s future, which included Financial Services Authority alerts and an announcement that the Serious Fraud Office was investigating complaints into the property group, a spokesman for Harlequin Property told FTAdviser that its descent into administration would not threaten investments.
A spokesperson for Harlequin told FTAdviser: “As Harlequin has always stressed, protection of its investors’ best interests is the priority.
“Over the last few months, Harlequin has been in discussions with various third parties to explore restructuring options to guarantee the continued operations of both the luxury resorts and construction programmes for the benefit of all concerned.
“The latest discussions represent further evidence of Harlequin’s commitment to its investors and Harlequin’s future. Details of the plan will be released jointly in due course. In the meantime, Harlequin looks forward to furthering its progress towards a shared goal.”
A spokesperson for Regulatory Legal declined to comment.