From the earlier update back on the 26th of February, on the dire case of LDQ Markets by the special administrators, it has been awfully quiet. However, today Baker Tilly has published a new LQD Markets administration process update. Explanatory, the Cyprus originated brokerage with FCA license has been a critical casualty from the horrid SNB incident, which got declared bankrupt on the 27th of January.
Relating back to today’s published document by Baker Tilly, a specified FAQ has been released, containing further information upon the forthcoming meeting on the 10th of April, between the Clients and the Creditors.
In more detail, the special administrators have clarified that the attendance of this particular meeting is not mandatory for Clients. However it does provide several benefits to participate, such as the given ability to vote on the outlined proposals of the special administrators. More importantly, the Baker Tilly will not impose any consequences on Clients who will not be there, every person‘s claim processing will be handled similar and fair.
One of the main proposals for LQD Markets’ future that have been suggested by Baker Tilly is the plan for LQD Markets to exit the special administration through dissolution. An alternative action that occurs when a firm cannot be sold in its entirety form, since an acquirer needs will be responsible of the situated debts and other obligations.
The reasoning behind this motive for Baker Tilly has to do with the unexpected results of the claims review, since these were much higher than anticipated. Altogether, the claims added to the deficit, it amounts up to a staggering &2.84 million, which is almost as double the initial projected figure.
At the moment, the special administrators are awaiting the confirmation of the FSCS upon the completeness of the scheme, as all trading product that are offered by LQD Markets needs to be covered. Last but not least, in a reassuring statement within the released document, the administrators have clarified that no matter the depth of the deficit, former clients of LQD Markets can and have to submit their rightful claims.