Vantis uncovers $6bn Stanford black hole
Stanford receiver Nigel Hamilton-Smith existing assets are only worth up to $700m leaving creditors who put in $7.3bn out of pocket
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