KPMG report: 16,278 Alpari UK clients have agreed their claims

Maria Nikolova

KPMG currently estimates total claims into the client money pool to reach USD 97.8 million.

About two years after “Black Thursday” events pushed Alpari UK Ltd into administration, the Joint Special Administrators (JSAs) from KPMG have published their 4th Progress Report, covering their work on the case from July 19, 2016 to January 18, 2017.

Let’s take a look at the numbers.

  • A final distribution from the Client Money Pool (CMP) is expected before 24 July 2017.
  • To date, 94,375 clients have access to the Claims Portal, whereas 16,278 clients have agreed their claim representing 96.2% by value of clients with a claim into the CMP.
  • The administrators have paid a total of approximately USD 51.8 million from the CMP in respect of 12,503 clients, representing roughly 53% of the CMP.
  • Current estimates suggest that total claims into the CMP will reach USD 97.8 million. However, as some clients (3.8% by value) have not yet agreed their claim in the Claims Portal and one client has appealed the administrators’ part-rejection, this figure may change, the KPMG JSAs warn.
  • At present, the administrators estimate that the overall return to clients will be in the range of 78.3 cents to 79.7 cents in the $ (USD).
  • The JSAs have agreed unsecured claims of GBP 18.47 million. As previously reported, the administrators have declared and paid two interim dividends totalling 20 pence in the £ (GBP) to all agreed unsecured creditors who have successfully passed KYC checks. The total amount distributed to date is GBP 4.25 million, including payments of PAYE on certain unsecured claims.
  • The timing and size of a further dividend is uncertain. However, at present, the administrators anticipate the final dividend to be paid by the beginning of 2018.
  • In the period covered by the 4th Progress Report, the JSAs have realised GBP 105,542 from debtors. KPMG’s administrators are pursuing approximately 40 high value overseas debtors.

FSCS

To date, the Financial Services Compensation Scheme (FSCS) has taken assignment of 12,759 client claims and has paid compensation of USD 50.8 million to 12,305 clients.

Samantha Bewick, KPMG

What’s next?

According to an order by the English High Court, the bar date for client money claims was set for October 30, 2016. Any clients who did not submit a client money claim by the bar date are no longer entitled to any distributions from the client money pool. However, the Claims Portal is still available to clients who previously had a claim into the CMP. Those claims will be treated as unsecured creditor claims. Eligible clients are able to assign their claims to FSCS at any time. FSCS have confirmed they will compensate all eligible clients of Alpari UK up to a maximum of GBP 50,000, including those clients who agree their claim after the bar date.

KPMG fees

The latest progress report features details on KPMG’s fees charged for the administration services. In an interview with FinanceFeeds, Samantha Bewick – one of KPMG’s Special Joint Administrators to Alpari UK, elaborated on the costs matter and sought to refute media speculation about the sum being extra high.

The administrators intend to publish a further progress report within one month of July 18, 2017.

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