London Capital & Finance administrators set to pay small dividend to bondholders

Maria Nikolova

A dividend has been announced by the joint administrators, payable to Bondholders with outstanding claims, of 5% of the total principal invested.

Smith & Williamson, the administrators of failed London Capital & Finance, have published a report outlining the progress in the administration of the company for the six month period ended January 29, 2020.

Let’s recall that Finbarr Thomas O’Connell, Adam Henry Stephens, Colin Hardman and Henry Shinners of Smith & Williamson LLP were appointed administrators of London Capital & Finance on January 30, 2019. Geoff Rowley of FRP Advisory LLP was subsequently appointed as conflict administrator by the Court on October 30, 2019.

LCF effectively ceased to trade in December 2018, following the intervention of the Financial Conduct Authority (FCA), which had concerns over how LCF was conducting its business.

In their report, the joint administrators say that their view continues to be that, based on the anticipated level of asset recoveries, Bondholders should not expect to receive a return in excess of 25% of their original investment. The joint administrators and their advisers are hopeful that this figure may increase but do not consider it appropriate at this point to speculate on the outcome of their continuing investigations into the debts due to LCF and the value of the potential claims the administrators have against various parties.

A dividend has been announced by the joint administrators, payable to Bondholders with outstanding claims, of 5% of the total principal invested. This represents 5% of the estimated total return of 25%.

The dividend is scheduled to be paid in March 2020. The exact date and further details will be confirmed in due course.

The Bondholders’ claims total approximately £237 million as at the date of administration.

Objective 3(1)(b) of Sch B1 is currently being pursued, which is namely to achieve a better result for the creditors, which mostly represents the Bondholders, than would have been the case had LCF been wound up (without first being in administration).

The vast majority of LCF’s assets were the debts due from a number of debtor entities. As at 30 January 2019, the outstanding total amount of debts due was calculated to be £237 million and is continuing to accrue interest. As previously reported, most of the debtors do not have sufficient assets with which to fully pay their debt due to LCF and some are not in a position to make any payment to the company at all.

Read this next

Digital Assets and Unite to Pave the Way for Decentralized AI Development

In an effort to create a community-driven platform for on-chain, decentralized AI models; the leaders have decided to join hands with to power Flock with decentralized computing.


Crypto 2025: The Action Points to Follow to Capitalize on Bitcoin and BlockDAG Network’s 2025 20000X ROI Predictions

In this analysis, we delve into the price predictions for Bitcoin and BlockDAG Network, and we explore the factors driving these projections while offering actionable insights for investors that are looking to capitalize on the 20000x potential of these projects.

Retail FX

Orfinex joins Financial Commission as approved broker member

Multi-asset brokerage firm Orfinex has become a member of the Financial Commission, joining the ranks of the self-regulatory organization. This accreditation reassures traders that the firm meets the quality standards set by the commission.


Telegram CEO’s Bitcoin stash valued in hundreds of millions

Telegram CEO Pavel Durov revealed that he has held several hundred million dollars in fiat and bitcoin for the past decade.

Digital Assets

Bitcoin drops below $60K as halving just 300 blocks away

Bitcoin fell below the $60,000 mark on April 17, just days before a scheduled reduction in mining rewards, known as the “halving,” which is set to occur on April 20.


New Meme Coin ICO Dogeverse Raises $6 Million After Completing Coinsult Audit

A new multichain meme coin, Dogeverse, has raised $6 million in its presale and recently passed a smart contract audit.

The new meme coin leverages bridge technology, ensuring the token is available across the most prominent on-chain markets.

Retail FX

Interactive Brokers posts Q1 earnings, raises dividend

Interactive Brokers Group Inc (NASDAQ:IBKR) announced its first-quarter financial results for the period ending March 31, 2024. The leading automated global electronic broker reported a GAAP diluted EPS of $1.61 and an adjusted EPS of $1.64.

Fundamental Analysis, Tech and Fundamental

Global FX Market Summary: USD, FED, Gold  April 17 ,2024

The Fed’s hawkish stance on interest rates is strengthening the US dollar while central banks globally grapple with inflation and economic growth.

Digital Assets

Kraken launches self-custodial wallet, joining competitors like Coinbase

Kraken, the second-largest U.S.-based cryptocurrency exchange, has introduced its own digital wallet, aligning its offerings with those of competitors like Coinbase.