London Capital & Finance’s Administrators complain about co-ordinated exercise to frustrate their enquiries
“It is unfortunate that the administrators are being required to deal with a concerted and very likely co-ordinated exercise on the part of a number of individuals aimed at frustrating the joint administrators’ enquiries”, a new report by Smith & Williamson says.
The document delivers little positive news, as the administrators complain about certain efforts to prevent them from doing what they were appointed to do.
As part of their investigations Smith & Williamson and their legal advisers have interviewed a number of individuals who are key to their investigations. However, a number of those invited for interview have declined to be interviewed voluntarily. Accordingly, a number of court applications have now been made under sections 235 and 236 of the IA86 to require their attendance before the court and it is likely that a number of further applications will be made to court in the coming weeks.
“It is unfortunate that the administrators are being required to deal with a concerted and very likely co-ordinated exercise on the part of a number of individuals aimed at frustrating the joint administrators’ enquiries, for their own reasons. This approach causes delay and additional expense to the joint administrators’ objectives, to the prejudice of Bondholders and so is most unwelcome”, the report says.
The administrators’ investigations to date have involved a large number of entities and individuals, all of whom are relevant to their enquiries in respect of tracing the funds lent by London Capital & Finance. The flow of funds is complex and the transactions involved are numerous. The joint administrators and their legal advisors have made significant inroads into understanding the actual movement of funds and the alleged rationale behind those movements and will continue their work in this respect, in order to maximise the chances of recouping monies on behalf of the Bondholders.
“Undoubtedly, there will be a significant number of legal actions that may be required by the joint administrators to achieve this, over a period of time”, the joint administrators warn.