Probably something of a result, in the circumstances. Unsecured creditors of Global Trader, the spread better forced to shut up shop by the FSA back in February, are likely to get 79 per cent of their money back, according to the joint administrators.
Creditors received a final report from Stephen Cork of Smith & Williamson this week as the company was placed in liquidation.
But the payout is only an estimate for now since the liquidators are still chasing funds held by various banks and brokers – not least JPMorgan, one of Global Trader’s prime brokers:
JP Morgan Securities Limited is estimated by management to hold £435,000 based on all positions closed to date. The Joint Administrators have not received substantive responses from JP Morgan to any of their correspondence and this matter has now been placed with my solicitors.
Other tricky issues include £500,000 sitting at UBS in the form of “one remaining illiquid stock” and various newly-discovered prime broker accounts in places like Thailand and Bermuda.
In the meantime, an initial report on the firm’s collapse has gone to the DTI (routine for administrations), while the administrators have also been liaising with the FSA “in an effort to assist with their investigations into the past actions of the company.”
So far the administrators have expended 2,611.60 hours work on Global Trader, which tots up to £868,466 ex-VAT.
Related links
FSA forces Global Trader to shut up shop following Artilium losses – FT story
Global Trader’s letter to forlorn clients – FT Alphaville
Aggrieved clients of Global Trader website