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£5 Million Swiss land banking company wound up in the High Court

INSOLVENCY SERVICE News Release issued by The Government News Network on

A Swiss company that sold land in Southern England as part of a scheme which left investors owning useless plots bought at inflated prices has been ordered into compulsory liquidation.

Hambrook & Greenstock AG ran a land banking business selling plots of undeveloped land to UK investors at three sites at Sible Hedingham, Marlow, and Chalford. The company bought the land for just over £600,000. Some 750 plots were subsequently sold to investors for £5 million.

The petition to wind up Hambrook & Greenstock AG, in the public interest, was presented following an investigation by the Department of Business, Enterprise & Regulatory Reform (BERR).

BERR Minister Pat McFadden said:

"This should send a message loud and clear to fraudsters who think they can rip people off and get away with it. These people used a slick sales pitch to swindle honest investors who ended up out of pocket.

We're determined to crack down on these scams. The public should be wary of aggressive land sales offers."

The grounds for the winding up, notwithstanding the company's steps to enter into a Swiss voluntary liquidation process (see below) were that it:

* carried on an unauthorised collective investment scheme in the UK.

* made unfounded and misleading statements in the marketing of the plots of land to the public.

* sold the plots of land to the public on the basis that it would seek
planning permission. No planning permission has been obtained.

High Court Registrar Derrett said she was satisfied that this is a case for a usual compulsory order.

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Notes to Editors:

1. The company was incorporated in Switzerland on 26 September 2005 as a private limited company (license number CH-020.3.029.109-2).

2. The company appears to have an authorised and issued share capital of 100,000 Swiss Francs, held by Mr Andres Schenker and Mrs Claudia Daxelhoffer.

3. The company's registered office or registered legal address is c/o First.Audit.AG, Zurcherstrasse 138a, 8501 Frauenfeld, Switzerland. It was formerly c/o Tresag Treuhand-und Unternehmensberatung AG, Gessnerallee 28, 8011 Zurich, Switzerland.

4. The directors of the company were Mr Andres Schenker and Mrs Claudia Daxelhoffer. Mrs Daxelhoffer ceased as a director at or about the time when the company entered into a Swiss voluntary liquidation process following the decision of a general meeting of its shareholders on or about 5 February 2007.

5. The Secretary of State's petition to wind up the company in England in the public interest was issued in the High Court on 19 July 2007 under the provisions of section 124A of the Insolvency Act 1986. The petition was presented following enquiries carried out by CIB under the provisions of section 447 of the Companies Act 1985.

6. On 18 October 2007 Mr Schenker stood down as liquidator of the company and Mr Guido Gmur of First.Audit.AG, Zurcherstrasse 138a, CH-8500 Frauenfeld, Switzerland was appointed liquidator in his place.

7. Mr Gmur did not oppose the public interest petition and the company was ordered into compulsory liquidation in the High Court on 28 November 2007.

8. Companies Investigation Branch, part of the Insolvency Service, carries out confidential enquiries on behalf of the Secretary of State for Business, Enterprise & Regulatory Reform (BERR).

9. The Insolvency Service administers the insolvency regime investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice.

10. All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, 21 Bloomsbury Street, London, WC1B 3SS, Tel No: 020 7637 1110. Email: piu.or@insolvency.gsi.gov.uk

Further information about the work of The Insolvency Service is available from http://www.insolvency.gov.uk