BusinessBusiness RecoveryCrown Currency debts more than £16.4m say administrators

Crown Currency debts more than £16.4m say administrators

Administrators reveal debts of more than £16.4m at collapsed foreign exchange business Crown Currency.

A CREDITOR report from the administrators of foreign exchange business Crown Currency show debts of more than £16.4m.

Paul Clark and Matt Bond of MCR alongside Harold Sorsky and Stella Davis of SPW, were appointed joint administrators on 4 October.

The administrators have received more than 9,500 claims through email and post ranging from £100 to £100,000.

The report reveals administrators have been unable to sell the business or assets, because it ceased trading prior to their appointment.

Sorsky, said: “This is a very challenging situation that we are having to unravel.”

He added the administrators are recruiting forensic IT experts to investigate all software and hardware at the company’s former headquarters in Cornwall.

Prior to the publication of the report the administrators obtained a court order to stop the names and addresses of people who have lost money through Crown Currency, from being published in the report.

They are also investigating the legal status of transactions into the company after both the director and banks knew the business was insolvent, but prior to its entry into administration.

Director Peter Benstead told Barclays bank on 29 September it was insolvent, the bank closed the business’ accounts on 1 October and the company entered administration on 4 October.

It is estimated that £1.1m of customer transactions took place during this period and the administrators are reviewing the legal status of those funds, the BBC reports.

The administrative team also obtained a freezing order on Benstead’s assets.

A creditors’ meeting for the companies will be held at the Hilton in Birmingham on 30th November.

Customers of Crown Currency Exchange can alternatively visit the company’s website at www.crowncurrencyexchange.com/statement.php

 

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