The failure of VTL Group subsidiary Nathans Finance is likely to drive Chancery Finance, another company owned by VTL Group, into liquidation.
And investors in Chancery have less chance of getting their money back than investors in Nathans.
Chancery stopped issuing bonds last year but still had $17 million to $18 million outstanding.
Graham Miller, managing director of Chancery trustee Covenant Trustee Company, said the trustee did not have the power to appoint receivers.
“We are not aware as to whether they have been put into liquidation but our expectation is that the company will go into liquidation,” he said.
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