The application was brought by the Guernsey Financial Services Commission (GFSC) on an urgent basis following the resignations on the 4 and 5 August.
The former directors notified investors on 29 July that the fund had been suspended.
Brazil investment
The administration managers are undertaking an immediate and urgent review of the company’s records and the position of monies lent to the Providence Group’s factoring company, Providence Fomento Mercantil, Investimentos e Participações.
The closed-ended absolute return fund aimed to provide investors with annual returns of between 7% and 14.25% from investments in Brazilian debt, specifically the factoring of receivables (the purchase of debt) of small and medium-sized businesses.
The fund lent money to the factoring company based in São Paolo for between 30 and 180 days. The short term debt was purchased at a discount of more than 2% per month with the returns collected at par.
The minimum investment was $50,000, €37,500, or £30,000.
US investigation
The GFSC had been working with the companies’ now ex-directors and also with the US Securities and Exchange Commission in relation to investigations being carried out into Providence Investments Inc. and Providence Fixed Income Fund LLC.
