5 December, AtoZForex.com, Lagos – Following an earlier released report concerning Alpari UK client compensation in form of dividend to preferential creditors, the joint special administrators (JSA) have released an update regarding unsecured creditor dividend as well.
Back in August 2015, the JSA initiated the process of making a first interim Alpari UK unsecured creditor dividend payment. This was to be made to unsecured creditors with agreed claims. At the time, a deadline of 30 October 2015 was set for such clients to prove claims. However the JSAs have endeavored to include any creditor who submitted a claim by the 20 November 2015; provided all the necessary documentation has been received.
Unsecured creditors dividend
On this note, the JSA have now decided to make a payment of 14 pence in the £ (GBP) to unsecured creditors whose claim has been agreed. These clients must have also fulfilled all necessary Know Your Client (“KYC”) checks. Clients who did not pass the KYC test for some reason should have been contacted by JSA by now, while creditors due for the payment will be notified via letter or email.
As regards employee claims, the JSA has clarified that this takes a separate process, with a plan that all employees with an agreed unsecured claim to be paid their 14p distribution within the next 10 working days.
Limit to dividend payment
Unfortunately, creditors with a claim value of GBP 714.29 or less will not be paid the Interim Unsecured Creditor Dividend, because the distributable amount to them falls around GBP 100 or less, hence, it is deemed uneconomical for the body of creditors as a whole to bear the administrative costs of making payments below this level. However, such clients will be paid in full when the final dividend is declared which will likely be in 2016.
The JSA clarified that there will be at least one further distribution to creditors. The amount or timing of which remains uncertain at this point. It is also not clear yet whether or not will be a further interim distribution ahead of the final dividend.
In conclusion, they have urged any unsecured creditor who is yet to submit their claim to do so as soon as possible in order to participate in any further dividends.
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