KordaMentha: BlackfortFX liquidation is next

13 July, AtoZForex.com, Lagos  A new update has surfaced in regards to the clients of KordaMentha. As the Australian based advisory and investment firm, got appointed by the FMA to become the responsible firm for receiving and managing the assets of defunct BlackfortFX/Arena capital limited, back in May of this year.

The update of KordaMentha was made due to the complaints of the clients of the former New Zealand FX firm. The advisory firm has now clarified that assets of blackfortFX will have to be liquidated, in order to meet obligations to clients. The decision for BlackfortFX liquidation was made so that the administration can generate sufficient funds to return to it affected clients in due time. KordaMentha has gathered all of it client’s accounts through their transactions processed by Arena bank. Based on previous evaluation the broker transacted with an estimated 750 clients, recent updates now shows that about 1,100 clients claims to have transacted with the broker.

KordaMentha issues client statements

As a matter of fact, KordaMentha has already decided to start issuing statements to its clients on July 13, 2015, meaning today. This enactment is based on their current stance with the broker, for which the client is required to affirm or disagree with. All clients will receive this statement by Saturday, 18 July 2015. Statements will not be provided to clients who claim they were assigned profit from another client’s account.

The administration has decided not to hand out any profit to its clients until it has confirmed the total debt of the company and the nature of liquidation the creditor claims. On top of these reasonings, is motive that BlackfortFX was not really operating in Forex.

Due to the lengthy process of balance affirmation and asset recovery, KordaMentha has issued a statement saying that the allocation of excess assets will be possible in the later part of this year hopefully. It has also been confirmed that due the fact that balance confirmation will take considerable time, partly as a result of serious doubts concerning the accuracy of the financial records Arena has provided to date, thus independent analysis of client positions will have to be carried out. Hence, distribution of surplus assets will be initiate latter in the year.

The broker was considered to be operating against the law governing investment in New Zealand and also blamed for putting clients funds were at risk, therefore prompting it to be placed under receivership by the federal authority in May 2015.

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