KordaMentha legal action against debtors

6 November, AtoZForex.com, Lagos – Following the liquidation procedure on Arena capital (blackfortfx), KordaMentha, the appointed receivers of the defunct forex firm has further released vital updates about Arena capital.

Interesting metrics discovered about Arena capital clients include:

  • 925 individual creditor clients, which are owed by Arena. This category depicts individuals who invested in Arena, but were not repaid their capital, or only received partial repayments.
  • 96 debtors of Arena. This are individuals who Arena paid funds beyond the capital invested. According to recent discoveries, Arena capital never actually utilized client funds for trading purposes, therefore, these profits are really inexistent. Hence, such profit received by clients have to be returned.
  • The aggregate amount owed to clients totals $6.96 million to 
925 individual clients.
  • $2.4 million is owed to Arena by debtor clients.
  • Account balances have been agreed with a total of 818 clients.

Recovery action

KordaMentha legal action against debtors, is purposed to recover money of Arena from debtor clients, who received more from Arena than they paid to Arena. Including, funds of Arena’s director and other related parties. On top of this, commissions paid to a number of parties who sourced additional clients to invest in Arena are being sought for recovery.

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Only 14 clients of the 96 debtors have agreed to return the fictitious profits received. However, legal proceedings have been commenced against the higher value debtor clients to recover the money they received. It is understood that it will be a difficult case, which may take several months to conclude.

Legal proceedings in case of noncompliance 

Commissions paid to introducers are also considered voidable; hence, a recoupment of such monies is being sort. Also, claims have been made against Arena’s directors and related parties. Repayment of money received as well as a return of properties purchased with Arena’s funds is sort. If any of these parties fail to comply with the receiver’s requests, legal proceedings will likely be opened against them.

KordaMentha has clarified that the eventual amount which creditors will receive is highly dependent on the amount recovered from people debtors of Arena capital. Hopefully, the process will be complete within the next six months and creditors will be dully compensated.

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