Stanford victim wants Vantis liquidator removed
Investor Alex Fundora is demanding Vantis partners be ousted as liquidators of cricket-loving tycoon's bank, but the firm is standing strong
An investor is calling for Vantis to be removed as liquidator of Allen
Stanford’s collapsed business empire, citing its financial troubles as a key
factor.
In submitting an affidavit last month, Alex Fundora pounced on the fact the
firm received a
going
concern warning from its auditors Ernst & Young, partly because expected
returns from its work on the Stanford job had not materialised.
Fundora asked the Eastern Caribbean Supreme Court of Antigua and Barbuda to
remove Vantis as Stanford International Bank’s liquidator, claiming the firm was
in over its head and in jeopardy of going bankrupt itself, according
to
Law.com.
Nigel Hamilton-Smith, joint liquidator said: ” It is evident that Mr Fundora
and his legal team sought to impugn the integrity of the joint liquidators,
based upon his interpretation of the Vantis plc results.
“Within the Independent Review Report provided by the group’s auditors, there
is a reference to an emphasis of matter regarding going concern, with particular
references made to SIB, our ability to operate within our banking facilities,
and the Group’s cost saving initiatives currently being undertaken.
“To clarify this matter, I can confirm that Vantis is not wholly reliant on
receiving funds for the SIB case in the short term and the cash flow
expectations reflect this.”
However the Independent Review Report did state to shareholders that Vantis’
investment in the work undertaken for SIB was “material”, Hamilton-Smith
conceded.
“Due to the extensive work and litigation that has been required to identify
and secure the assets of SIB, the timings of when Vantis will be paid for the
work undertaken is uncertain,” he said.
The court’s decision is being awaited and Hamilton-Smith hoped Fundora’s
demands would be refused, allowing his team to continue efforts identifying,
securing and returning the assets of SIB to the investors and creditors.
“We therefore very much hope that the High Court of Antigua & Barbuda
will dismiss the application brought by Mr Fundora, which will allow for us to
remain focused on these crucial tasks,” Hamilton-Smith added.