UHY HACKER YOUNG administrators have been called to London-based specialist investment business to take on the sixth special administration since its inception in 2011.
Andrew Andronikou and Peter Kubik, partners at UHY Hacker Young, have been appointed joint special administrators Hartmann Capital Limited.
The application for the administration was made after a potential shortfall in client monies and regulated capital was discovered by the directors. The administration was granted during an out of hours hearing after the directors made an urgent application to the court.
Kubik, partner in turnaround and recovery, said: “We have worked closely with the FCA over the past few weeks to ensure that the company’s special administration has as minimal impact as possible on the clients of Hartmann Capital and we continue to work alongside the FCA to ensure an orderly distribution of client assets as quickly as possible.
“This is the primary objective of the special administration regime and once all client assets have been returned, we will then focus on the more standard administration procedure of realising the company’s assets and carrying out a thorough investigation into the company’s dealings and specifically into how the shortfalls occurred.”
This is the second time UHY Hacker Young administrators Kubik and Andronkiou have worked on this type of administration. They were appointed to the fifth special administration in October 2013, of City Equities.
KPMG administrators were appointed to the first special administration when financial institution MF Global collapsed in 2011.
The SAR process entails the administrator 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.
SARs were introduced to help creditors caught up in complex insolvencies receive their funds quicker. The collapse of investment bank Lehman Brothers at the back end of 2008 saw its administrators tied up in heavy litigation – resulting in some creditors waiting years before they received any payment.
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