Special Administrator KPMG has eaten up nearly 10% of all cash available in fees.
WorldSpreads' special administrator KPMG, in charge of sorting through client claims as well as figuring out where missing client cash went, has published its first statutory creditors report, in advance of an initial creditors meeting to be held on May 23 in London.
KPMG believes that creditors will end up receiving about 30-35p per £ of owed funds from available remaining cash at WorldSpreads, meaning that there will be about £10 million of about £30 million owed to clients to distribute. The vast majority of clients will be made whole by the FSA's Financial Services Compensation Scheme, which covers up to a £50,000 loss for each account. KPMG reported that there were just 90 accounts at WorldSpreads larger than £50,000.
The main beneficiary so far of the WorldSpreads bankruptcy seems to be administrator KPMG -- they also reported that they have racked up fees of £900,000 already, nearly 10% of the total cash available to distribute! And that number will continue to rise, as the saga continues.
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