The special administrators of Worldspreads Limited have today issued all clients with their final statements. Clients will have the opportunity to review the details of their account and confirm whether they are correct or whether they disagree with the statement. There are approximately 15,000 clients.
“While the sudden collapse of Worldspreads has understandably caused a great deal of distress for the company’s clients, the issuing of all final client statements today is an important milestone in returning funds to clients. We will now be able to start agreeing the statements with clients. The next stage in the process will be the creditors’ meeting which will be held within the next 8 weeks, in line with our statutory responsibilities.”
If UK clients have not received their final statement within 7 days, or 21 days for overseas clients, the special administrators have requested that they send their account details and current contact details, including email address, to firstname.lastname@example.org.
More information on the special administration is available at www.kpmg.co.uk/worldspreads As well as the email address, there is also a clienthelpline number: +44 (0) 203 284 8829.
- ENDS -
For media enquiries, please contact:
Sorrelle Cooper, Senior PR manager, KPMG
M: +44 (0) 793 207 8218
KPMG Press Office: +44 (0) 207 694 8773
For non-media enquiries, please contact: +44 (0) 203 284 8829 or email email@example.com
Notes to Editors:
Upon the application of the directors the High Court appointed Jane Moriarty and Samantha Bewick of KPMG as joint special administrators of Worldspreads Ltd, a UK based spread betting business, late on Sunday 18th March 2012. Worldspreads Limited is a wholly owned subsidiary of Worldspreads plc, a company incorporated in Dublin, Ireland.
The Special Administration Regulations brought in following the administration of Lehman’s European business. In many respects a special administration is very similar to an ordinary administration. As such, it is subject to the supervision of the English High Court in London. However, some of the differences are set out below:
A) The special administrators have to pursue three objectives (although the order in which they appear is not important):
B) If there are insufficient securities in a particular stock line in an omnibus account to meet all valid proprietary claims to that stock line, clients will bear the shortfall pro rata and have an unsecured claim for the balance. Due to the accounting irregularities that have been discovered, it is likely that there will be a shortfall to clients. One of the immediate priorities of the special administrators will be to investigate and attempt to reconcile all client positions in order to establish the extent of the shortfall.
As in an ordinary administration where sufficient realisations are made to enable dividends to be paid, in due course, the special administrators expect to pay dividends to unsecured creditors who submit proofs of claim by the last date for proving (which has not yet been set).
C) A creditors’ committee can be established to assist the special administrators to fulfill their functions. Membership may include both creditors and clients with proprietary claims only. A committee of between 3 and 5 members will be formed at an initial meeting of creditors to be held as soon as is reasonably practicable and, in any event (absent an order of the Court extending time), within 10 weeks of the date on which Worldspreads Limited went into special administration.
D) The costs and expenses of dealing with and distributing client assets are paid out of client assets. Other costs and expenses are paid out of the company’s assets.
The appointment of special administrators to Worldspreads Ltd is the third use of the new regime. The first use of the regime was MF Global UK: Richard Fleming, Richard Heis and Mike Pink of KPMG were appointed special administrators of MF Global UK on 31stOctober 2011. The second use of the regime was the appointment of special administrators from Mazars to Pritchard Stockbrokers Ltd on 9th March 2012.
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.