Investment company Green Oil Plantations, which raised £24.4m mainly through self-invested personal pensions (SIPPs), has entered administration.
The company - which also has an Australian arm - operated a UK investment scheme which invested in an Australian plantation that was supposed to produce 'green oil' biofuels.
However following what the company called "operational issues" with achieving the first harvest, the company faced significant cash flow difficulties.
As a result the directors have taken steps to place the business into administration.
Simon Kirkhope and Chad Griffin of FTI Consulting have been appointed as joint administrators of Green Oil Plantations Limited and Green Oil Plantations (Australia) Limited.
The investment scheme was open to new investors between March 2010 and January this year.
Individual investments were in excess of £10,000 and commonly made via a SIPP provider, according to the company.
Kirkhope, joint administrator, said, "Our priority is to maximise returns to investors and other creditors.
"We are working closely with the Financial Conduct Authority and the management of the plantation in Queensland, Australia to this end.
"We will be communicating further details to investors as soon as practicable."
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