Administrators of Reyker Securities to allow clients to submit claims for a further period of time
Any clients who have not yet submitted a claim are strongly encouraged to do so before April 24, 2020.
The special administrators of Reyker Securities today provided an update for the company’s clients and creditors.
The Bar Date for client claims was 17.00 hours on April 7, 2020 which has now passed. As at the deadline, 70% of client claims had been agreed and submitted, the administrators report.
Given the recent global events, the administrators say they will continue to keep the online portal open and allow clients to submit their claim for a further limited period of time. Any clients that have not yet submitted a claim are strongly encouraged to do so either on or before April 24, 2020 by logging into the Portal and submitting their claims there.
The administrators also updated on the latest developments regarding a possible wholesale transfer of client assets to a single purchaser of Reyker’s business.
Following a thorough marketing process, the administrators had accepted an offer for Reyker’s business and assets on January 28, 2020 (subject to contract) and, since that date, the respective parties and their legal advisors have been working towards an exchange of contracts. Unfortunately, on April 1, 2020, the proposed purchaser communicated that it wished to withdraw its offer.
While undertaking contract negotiations, the administrators have been able to continue to market the business for sale and maintain a dialogue with the underbidders although a sale contract has not yet been issued to any of these underbidders. The administrators continue to work closely with all interested parties and these discussions are ongoing.
The Regulations and the Rules state that the transfer of Custody Assets may not take place sooner than three months from the Bar Date. This means any transfer of Custody Assets cannot be implemented sooner than July 7, 2020.
It was hoped that a sale of the company’s business and assets could be completed around July 7, 2020. As a result of the proposed purchaser withdrawing their offer, there is a risk that the target of a sale and a wholesale transfer completing by early July 2020 may not be met. The administrators note, however, that they continue to work to secure a sale in the best interest of Reyker’s clients, creditors and other stakeholders and prioritise the return of client assets at the earliest date possible.
As FinanceFeeds reported, Reyker Securities entered administration in October 2019.