Smith & Williamson, administrator of collapsed broker Global Trader Europe, have launched an investigation of the company's affairs, seeking any suggestion of wrongful and fraudulent trading.
In a letter to a group of creditors, the administrator revealed it is also looking into issues of whether there were any ‘transactions at an undervalue’ – instances where the company sold assets below their real value before going into liquidation, The Daily Telegraph reports.
To help with its investigations, Smith & Williamson has brought in top City litigators Kirkland & Ellis and Macfarlanes.
However, Mark Trafeli, general counsel of GTE's parent company New World Trader, said Smith & Williamson's latest update was ‘expected and very ordinary... as the law requires due consideration of such matters in each and every liquidation’.
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