Connaught Asset Management (CAM) has confirmed that Tiuta International Ltd has been placed into administration.

The joint administrators are Danny Dartnaill and Malcolm Cohen of BDO LLP. They were appointed on 5 July.

Mike Davies, chairman of Connaught Asset Management, said: “Following the acquisition of Tiuta International by Connaught Asset Management (CAM), the directors of CAM decided to place Tiuta International Ltd, as the company holding and owning the loan book for the Connaught Income Fund Series 1, into administration in order to secure the orderly wind-down of the loan book and to ensure Connaught is being as transparent as possible during this process.

“This decision has nothing to do with the wider Tiuta plc group. We have opted for this as Connaught has never handled any investor monies and we have no intention of doing so now. Between the acquisition of Titua International and placing it into an administrative process all bank accounts have effectively been frozen with no monies leaving its bank account. The independent administrator will be responsible for all money within bank accounts and investors will be able to see that any monies transferred around will be done so transparently.”

Davies added: “CAM’s objective has been to effectively appoint an independent custodian to manage the wind down of the loan book and our decision to opt for administration protects investors and Connaught, and clearly demonstrates that we have no other intention but to recover as much money as possible for investors in an open and transparent manner.”