Liquidators have been appointed to the two companies behind the XTB range of corporate bond ETFs following Equity Trustees suspending redemptions last month according to The Australian.
The two companies in liquidation are the Australian Corporate Bond Trust and Global Bond Exchange. Alan Walker and Glenn Livingstone of WLP Restructuring have been appointed liquidators after an urgent sale process failed to produce a buyer under an administration arrangement.
Equity Trustees was the responsible entity of the Australian Corporate Bond Trust.
Exchange-traded bonds, or XTBs, provide retail investors with access to corporate bonds and a known return before they invest and avoid often large minimum investment amounts required for the asset class.
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The XTB website has been shut down.
A creditors’ report said the companies failed due to inadequate cash flow, limited cash being raised in a preference share offering and withdrawal of financial support from a related entity of one of the directors.
XTB had partnered with Cboe Australia last year to offer a range of exchange-traded bonds on the Cboe Australia trading platform.
