Worldspreads administrators rack-up £900,000 in two months

KPMG ADMINISTRATORS have charged about £900,000 for its role at the collapsed international investment bank.

Samantha Bewick and Jane Moriarty, KPMG partners, were appointed joint-special administrators to the investment business on 18 March following an application by the directors.

The first creditors report showed the cost including…. It also highlighted that creditors are likely to receive 30p – 35p for every pound owed. The administrators said they have identified about £30m in claims. The duo have found around £5m in segregated accounts and a further £11m in the house accounts.

In a special administration the administrators trace the money given to the collapsed company which should be segregated from the investment business’ own accounts. However, there is a shortfall in the claims against the segregated pool, and clients will have an unsecured claim against the estate.

Moriarty said: “Our priority has been to analyse the company’s records so that we can agree the balances, which is an important first step in starting to return money to clients. We have now issued around 18,000 statements to clients, and to date have agreed approximately two thirds of the client creditors’ balances.

“We have commenced our review into the reasons for the company’s failure and have, to date, taken possession of around 24 terabytes of data (this is equivalent to 10 billion A4 pages and is larger than The Library of Congress which has 20 terabytes). While we are able to indicate high level data around funds collected and funds owed, it will be some time before an exact position on the return can be given. A broad guide at the moment suggests a return to client creditors of 30-35p in the £1.”

The SAR process entails the administrators completing three tasks: making a swift return of client assets; timely engagement with authorities; and to rescue the business as a going concern, or to wind it up in the best interests of the creditors. A regular administration involves the latter, but not the first two objectives.

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