Johannesburg - Troubled unlisted investment firm Edwafin was reportedly placed in liquidation on Friday, after a failed bid by management place it under judicial management.

"At least the months of desperate waiting and tension is (sic) now somewhat over," wrote debenture holder Mario Koppers in his blog.

Fin24.com is in possession of a copy of a letter from law firm GDLK Attorneys which confirms to debenture holders that a provisional order of liquidation has been granted.

According to the letter, control of the company has been taken away from the directors of the company and liquidators are to be appointed by May 25 2009.

The first major sign of trouble for backers was in October 2008, when interest payments to debenture holders dried up. Executives blamed the slowing global economy for issues facing the business. They were still able to make partial interest payments to some debenture holders in early 2009.

According to the last communication from the company to debenture holders, Edwafin's debts total R228.5m while assets amount to R16.5m.

Liquidators are to now be appointed to investigate the demise of the investment company which has been in the press since 2006.

Koppers, a vocal activist on behalf of investors, had previously raised the idea of a class action lawsuit against present and former directors of the business.

- Fin24.com