Baker Tilly, the special administrators of LQD Markets (UK) Limited, have earlier today published an update regarding the adjourned meeting of creditors of the troubled UK Forex broker. The second meeting of creditors, held on April 20th, brought a piece of positive news, as the proposals set out by Baker Tilly regarding the dissolution of LQD Markets and return of funds were this time supported by the majority of votes.
The previous creditors and clients meeting, held on April 10, 2015, saw the bulk of clients of the broker vote in favor of the proposals by the administrators. However, the overwhelming majority of creditors voted against the proposals. The outcome of the first meeting had risen chances of delays in returning client funds and of the court intervening heavily into the administration process.
The skies have cleared since the meeting on April 20, 2015, with the proposals regarding the future of LQD Markets approved.
A brief reminder of the proposals that drew the discontent of the creditors during the first meeting:
- Return of client assets;
- Engagement of Baker Tilly with authorities;
- Rescue the company or wind it up in the best interest of the creditors;
- Distribute funds available to creditors in a way considered economic;
- The company to exit the special administration by dissolution when the special administrators deem appropriate;
- The special administration could be exited via compulsory winding up.
LQD Markets appointed special administrators on February 3, 2015, after halting operations due to losses incurred as a result of the Swiss franc move on January 15, 2015. Administrators have encountered difficulties in assessing the financial status of the broker, with the deficit on client monies turning out to be twice bigger than initially projected. The New Zealand subsidiary of LQD Markets is also under special administrators oversight now.
To view the notice about the adjourned meeting of creditors, click here.