21 April, AtoZForex, Lagos – The case of Alpari UK bankruptcy proceedings has dragged for over a year now, metamorphosing into a saga as the case draws closer to an end. The latest development comes as Alpari UK KPMG appoints debt collector agent.
Alpari UK KPMG appoints debt collector agent
KPMG, the relentless Joint Special Administrators of the defunct Alpari have announced the appointment of Beeston Shenton with regard to legal action in recovery of the debts due from clients with negative balances. Therefore, Beeston Shenton are now officially authorized and instructed to act on behalf of the defunct broker. Also to follow up the work of the Joint Special Administrators and to pursue payments due to the Company.
In executing their duty of funds recovery, Beeston Shenton will contact clients directly. It has been clarified that all questions regarding this process should be directed to the newly appointed debt recovery team, while the team will liaise with Alpari and the Joint Special Administrators as appropriate.
Negative balance recovery
The step taken as Alpari UK KPMG appoints debt collector agent is understandable, considering the difficulty in recovering such negative balances. In the previous update to this case, KPMG reported a shortfall of $19.8 to $21.7 million in Alpari UK client funds. KPMG expects that only $76-$78 million will be returned to ex Alpari UK clients, when all procedures has been followed through.
Alpari UK clients will get back around 80 cents on one USD from the Alpari UK bankruptcy. Yet, former Alpari UK clients with trading accounts of less than £50,000, have more luck. Considering that the KPMG foresee that these traders will probably get most of their funds returned from the FSCS scheme.
Only 49.9 million had been returned
The special administrators now estimate the total client funds recovered to date at $98,244,193, which includes the funds held at e-Wallet providers that lend their services to Alpari UK. These funds held at the e-Wallet providers, did not fall under the Client money segregation legislation. As shown in the KPMG update, all costs incurred in the Special Administration in the period to 18 January 2016 have been allocated between the “Client and House Estates” based on the methodology previously agreed.
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