ASIC Winds up Mayfair 101 Debenture Issuer

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The Australian Securities and Investments Commission announced today that following its application, the Federal Court has ordered on 29 January 2021 the winding up of M101 Nominees Pty Ltd, the issuer of M Core Fixed Income Notes, the secured debentures promoted by Mayfair 101.

By issuing court actions against Mayfair 101 Group companies and their director James Mawhinney, ASIC sought to protect the assets of M101 Nominees and the interests of M Core noteholders. The order is the first final outcome arising from ASIC's court actions.

According to the order, M101 Nominees would be wound up on just and equitable grounds. The court also appointed Said Jahani and Philip Campbell-Wilson of Grant Thornton as liquidators in order to preserve the assets of the company during the determination of ASIC's winding up application. The two were previously provisional liquidators.

From 2019 to 2020, M101 Nominees raised approximately $67 million from investors through falsely representing that funds invested would be fully secured. Beginning in March 2020, M101 Nominees stopped repaying funds to investors, and from June 2020, they froze interest payments to investors.

The Mayfair 101 Group is required to return a total of approximately $211 million to its investors who invested in the company's M Core Fixed Income Notes, M+ Fixed Income Notes, the IPO Wealth Fund, IPO Capital and Australian Property Bonds.

Mayfair 101 Group companies and James Mawhinney consented to the orders made by the Court. The Court will publish reasons for its decision at a later date.