The Exchange Insurance Company Limited ("ExCo"), a European specialist general insurance company authorised and regulated by the Financial Services Authority (FSA), with headquarters in the City of London, has entered administration. ExCo also maintained an administrative operations centre in Essex and an administrative office in Dublin.The company will be quite well known in Ireland as the Exchange Bond was the instrument through which controversial Irish developer, the Ciaran Maguire Group (also operating as Flash Developments and Palm View Resorts), has been guaranteeing deposits on a new off-plan development proposed for the island of Boa Vista in the Cape Verde Islands.
The Exchange Insurance Company's website currently says: "The Company is currently unable to pay creditors and meet claims and has, therefore, sought protection of the Court through the administration process whilst it is seeking to resolve its financial difficulties."
The Exchange Insurance Company Limited describes its business as the underwriting and marketing of the Exchange Bond and the Completion Bond.
An Exchange Bond is a surety bond or a form of financial guarantee. It acts as a substitute for the cash deposit given by buyers to vendors at the time of exchange of contracts in residential house purchases. The property vendor agrees to accept the Exchange Bond instead of cash. The buyer pays the entire purchase price at completion.
A Completion Bond is a financial product for use with deferred payment/equity schemes when buying property. It is a surety bond that guarantees the full deferred amount to the seller (usually the home builder) in the event the buyer fails to make the deferred payment due on the property within the time period allowed – usually 5 to 10 years.
Since March 6th last the company's website has carried the following message:
On 5th March 2009 Neil Mather and Christopher Morris of Begbies Traynor, 32 Cornhill, London EC3V 3BT were appointed joint administrators of The Exchange Insurance Company Limited.
The Exchange Insurance Company Limited is in administration. Its affairs, business and property are being managed by the joint administrators, who act as the company’s agents and without personal liability.
In the first instance, all enquiries as regards the status of bonds issued by the company should be directed to its offices in Great Dunmow. All enquiries will be dealt with as soon as possible by the available staff.
The administrators are working to secure funding to maintain the business as a going concern whilst the FSA approval process is undertaken ahead of a potential refinancing of the business. The administrators are already speaking to a number of interested parties and would invite any other interested parties to contact them urgently by e-mail directed to richard.goddard@begbies-traynor.com.
All creditor claims relating to the administration should be directed to the administrators’ offices at 32 Cornhill, London EC3V 3BT. All correspondence should be marked for the attention of the joint administrators of The Exchange Insurance Company Limited - in administration.
Please send any general queries that you may have to enquiries@exchangebond.com
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