Crown’s final days could yield funds for creditors

Administrators are looking into whether any of the 13,000 customers of
collapsed exchange firm Crown Currency Exchange have rights to a refund.

Joint administrators from both
MCR and
SPW are
looking into the events leading up to the company’s collapse. They have been
told that the company told its bank on 29 September that it was insolvent. On 1
October the bank, Barclays, closed Crown’s accounts. Crown went into
administration on 4 October.

Administrators are now reviewing whether any customers who paid Crown during
that six-day period could be applicable for a refund, moving them up the pecking
order and potentially ahead of unsecured non-preferential creditors.

Customers and other creditors are owed £20m.

Administrators will examine the accounts of Crown during the final few days,
a process that they expect will take at least 21 days. As a result the joint
administrators do not anticipate issuing an update on their findings until the
week commencing Monday 8 November at the earliest.

“This may provide some hope for a very limited number of consumers but we
will need to review the position very carefully and taking into account each
customer’s individual circumstances prior to making any final decision,” said
the joint administrators in a statement.

“Indeed it could well mean that the administrators may need to obtain a
determination of the Court. At this moment in time, however, no decision has
been made and consumers need not contact the joint administrators.”

They have asked customers of Crown to refrain from sending in any more
information at the moment.

Further reading:

outline roles at Crown Currency

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