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Hydrology Water bonds investment claims guide

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Hydrology PLC – previously known under the names of Water Bonds PLC, Nexus Water Bonds before finally settling on Hydrology in March 2016, originally proposed a CVA – a Creditors Voluntary Arrangement due to “financial difficulties” experienced by the company.

Now it’s gone into Administration

But should have investors have been pointed towards a Hydrology PLC investment in the first place?

Many appear to have been mis-sold via SIPP pensions, and may be able to make a claim for losses.

Can you claim for Hydrology mis-selling compensation?

Several financial advisers and the FSCS have been paying out compensation for the mis-selling of Hydrology water bonds and similar investments via SIPPs and SSASs for a few years, with Spencer Churchill Claims Advice often leading the claim on a No Win – No Fee* basis.

If you:

  • Transferred your pension to a SIPP
  • Invested in Hydrology Plc or other high-risk investments
  • Aren’t earning over £100k per year
  • Aren’t a Sophisticated Investor

Then you may have been mis-sold, and you could be able to make a claim for negligent SIPP advice.

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Hydrology PLC’s “financial difficulties”

Hydrology PLC was created to “enter commercial water markets by financing and developing facilities” that treat water, purifying it for use in industrial purposes.

So far so good, and as of late 2016, Hydrology PLC was operating two projects in Brazil and the US, while listed on the Cyprus Stock Exchange.

But the reasons for financial difficulty were stated in their proposal to enter a Creditor’s Voluntary Agreement:

  • Both projects require further finance for development and maintenance
  • US project suffered from collapse of oil and gas prices – 73% drop in the price of water treatment and disposal
  • Substantial legal fights with local partners
  • Considered “toxic” by the investment community [sic]

This has meant that Hydrology PLC has DEFAULTED on interest payments to debenture holders between March and Sept 2016, and again from October 2016 though to 1 March 2017, as the company is not able to pay.

For most SIPP investors, the question might not be what happened to Hydrology? so much as can I make a claim?

Hydrology PLC timeline of events

  • Company formed

    2013

    What is now Hydrology Plc formed as Water Bonds PLC back in 2013, before renaming to Nexus Water Bonds PLC, and finally Hydrology PLC.

  • Toxic investments

    2017

    Update released: investment is now considered to be “toxic”

  • Liquidation

    2018

    In July 2018, Hydrology Plc entered into liquidation – a type of insolvency proceeding.

  • Updates

    2018

    The updates from the administrator and later the liquidator shed more light on what happened with Hydrology PLC:
    “Hydrology has financed two projects to date”: Brazil for a facility that treats brackish water from the Sao Joao River, and USA for a Commercial oilfield water disposal facility.
    Both facilities required further investment for maintenance and expansion.
    As a result of a changing US market, there was a 73% drop in the price of water treatment and disposal.

Do you know how people complained about mis-sold investments and pensions in the last year?

A lot. Over twenty thousand complaints were made about mis-sold pensions and investments in 2020/21, a figure which had doubled since the year before.. It’s no secret how serious this problem is, and it just seems to keep getting worse.

People receive poor financial advice every day. Sometimes they don’t even realise that they’re owed whopping amounts of compensation.
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Have you been a victim of financial mis-selling?

Answer a few questions and find out if you have good grounds to make a financial compensation claim:

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Were you told to invest all, or most, of your savings into a single product?

Reaching out for help is never easy,
especially if you’ve been misled in the past.

But getting in touch with us won’t commit you to anything. We want to toss you a lifeboat and guide you through the choppy waters of the financial ocean, not leave you struggling to stay afloat. Our experts are here to offer advice and support on financial claims. We know what we’re doing and you can trust that if you’ve got questions, we’ve got answers.

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Find out how much you could claim today

Ready to take the next step? We’re here with clear, no-pressure advice. Give us a call today to find out if you have a valid claim

Call: 01204929929

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Find out how much you could claim. Fill in the form, and we’ll get back to you with free, no-obligation advice.
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