Troubled overseas property company Harlequin is in "advanced discussions" with investors over its further funding and a company restructure, according to a law firm involved in the talks.
It has already put its UK-based sales arm into administration, a move it said was necessary because the day-to-day running of that business had become "increasingly challenging, to the point that it is now almost impossible".
According to law firm Regulatory Legal, which acts on behalf of some investors in Harlequin and set up the Harlequin Investor Group, the overseas property firm has been "working with a number of parties to explore restructuring options for both investors and Harlequin's overseas companies to ensure effective delivery of investments".
Discussions are now in "advanced" stages, according to the law firm. It said it envisaged that the main source of funds for construction of the overseas properties will be further investor monies from completions and external finance.
The final plan will give investors "transparency and a greater say on how funds are raised and spent on construction", the law firm said.
However the Financial Conduct Authority (FCA) last month warned investors considering paying more money to any of the companies in the Harlequin group "to do so with caution".
This follows an initial alert from the regulator in January warning financial advisers - some who earned up to 15% commission on the sales - about investing clients' money in Caribbean property through Harlequin Property.
Many invested via self-invested personal pensions (SIPPs) and the regulator has also written to SIPP providers asking them for details of members holdings in Harlequin.
Harlequin did not respond to a request for comment at the time of writing.
Square Mile’s series of informal interviews
Also joining Tenet board
Alzheimer’s is the most common cause of dementia
Total of 72 accredited firms
23% fall since Q1