St Laurence Property Development Fund will be placed into liquidation at the end of the month, when it fails to repay more than $24 million owed to investors.
The trustee, Perpetual Trust, says the directors have written to investors saying the fund can't repay the $18 million worth of bonds due on 30 June, and more than $6 million of interest in arrears.
Perpetual agrees with that, but it has taken issue with the rest of the letter, which proposes alternative options to appointing a liquidator.
The trustee says the options raised by the directors, who include Kevin Podmore, are not possible, or have been misrepresented, and investors have been given incorrect information.
