Wenham Major creditors see £10m go to HBOS

Clients of Wenham Major are expected to ask for their money back after it
emerged that £10.3m paid into the collapsed firm’s accounts in fees was used to
settle debts owed to HBOS, the firm’s bankers.

According to the creditors’ report, the money was drawn upon by HBOS because
it had cross guarantees from Wenham Major which gave it the right to set debts
against deposits by other parts of the business.

The clients, 40 to 50 wealthy individuals, are expected to claim they are
owed the money because they paid up front for involvement in a sideways loss
relief scheme that did not go ahead. Loopholes that allowed the scheme were
closed by measures in the Budget this year.

Administrators from Vantis are still investigating Wenham Major offices in
Dubai and Pakistan to see if there are funds that can be drawn upon there but
the creditors’ report says they do not expect to realise any money for paying
out to unsecured creditors.

PricewaterhouseCoopers and Kevin Prosser, a top QC at Pump Court Tax
Chambers, are among the many creditors.

Wenham Major went into administration at the beginning of May with most of
the firm being taken over by RSM Bentley Jennison for £112,000.

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