Vantis uncovers $6bn Stanford black hole

Allen Stanford

Vantis receiver Nigel Hamilton-Smith has uncovered a $6bn (£3.9bn) black hole in the remains of Stanford International Bank.

The financial institution, owned by cricket-loving tycoon Allen Stanford went into receivership last year after its operations were exposed by the financial crisis.

Hamilton-Smith, head of corporate restructuring at Vantis Business Recovery told Insolvency News: "There is meant to be funds from the sale of certificates of deposits worth $7.3bn. However, the only assets existing are worth between $500m and $700m creating this $6bn hole in Stanford International Bank."

Vantis has also suffered as a result of taking on the receivership. The firm received a going concern warning from its auditors Ernst & Young because of uncertainty about whether it would receive money owed from its work at Stanford.

Further reading:

Stanford causes Vantis going concern threat

Vantis receivers fear 'significant' asset shortfall at Stanford