Proposals of administrators of AFX Markets get accepted at first creditors’ meeting

Maria Nikolova

The meeting was held earlier this week, with all proposals of the special administrators accepted without modification.

Jonathan Elman Avery-Gee and Daniel Mark Richardson of CG Recovery Limited, who have been appointed special administrators of AFX Markets, have just made public a notice about the first creditors’ meeting.

The meeting of creditors to consider the Joint Special Administrators’ proposals was convened and held on November 5, 2019. The proposals were accepted without modification.

Let’s recall that the list of proposals included that:

  • the special administrators ensure that client money are returned as soon as practicable;
  • the special administrators either rescue the company or wind it up in the best interest of creditors;
  • that the administrators realise the remaining assets of the company in pursuit of the objectives of the special administration;
  • once the objectives of the special administration have been fulfilled, the administrators seek to conclude the case either: (i) by filing notices that the company no longer holds client assets and dissolving the company without any further recourse to the creditors or clients of the company; or (ii) put forward proposals for a company voluntary arrangement.

The first administrators’ report has revealed a heavy shortfall in client money.

Information provided by AFX to the Financial Conduct Authority on July 23, 2019, indicated that the company held £7.8 million in client money with 1,025 live customers. On August 12, 2019, the company notified the FCA that there was only £458,697 held in their UK bank accounts. Thus, there is a deficit of more than £7.3 million.

Since their appointment, the administrators have sought the assistance of the directors of AFX but requests for important information to assist the administrators remain outstanding.

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