Alpari UK Administrators KPMG provide update on insolvency proceedings

Earlier today KPMG, the company that provides the special administration services to troubled FX broker Alpari UK, issued an update on how the insolvency procedures are developing.

The administrators confirm the sale of intellectual property assets (including the Alpari trademarks) to Andrey Dashin, a deal that is set to release funds sufficient to recover some value to creditors. Unfortunately, the administrators also say they were unable to find a buyer for the entire company, meaning that there will be layoffs of staff and that the company will be sold, if a buyer is found, piece by piece. Talks in that direction are continuing, according to KPMG’s announcement.

Client funds are slowly being recovered. For that matter KPMG states:

Administrators have contacted all the institutions that held client money on behalf of the Company and have transferred to date approximately £43.3 million – representing 66% of these funds – into bank accounts under the Joint Special Administrators’ direct control. These accounts are held on trust by the Joint Special Administrators for the benefit of the retail clients of the Company. The remaining approximately £22.2 million of segregated client money is currently held in a segregated account and the Joint Special Administrators are awaiting confirmation of its transfer to an account directly controlled by the Joint Special Administrators.

And now it is time for the dull news: there is still no special client claims portal (although some progress has been achieved in developing one).

Also, the Joint Special Administrators seem to be having hard time analyzing traders’ positions closed on January 15, 2015, and January 16, 2015. KPMG says it still needs time to get to grips with these data. No deadline is provided in this respect but the administrators promise to update everybody on how these checks are going not later than the week that ends on February 20, 2015.

The official document by KPMG can be viewed here (pdf).

If you are a client of Alpari UK, you can sign LeapRate’s petition that seeks immediate return of client funds. Check it out here.

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