KPMG fees charged to Alpari UK administration top $15M, as $48M has been returned to clients

It has been more than a year since the courts appointed KPMG as the joint special administrators over bankrupt Alpari UK, and the saga is far from over for ex Alpari UK clients.

On the 13 month anniversary of the January 15, 2015 Swiss Franc spike which started the story, KPMG has issued its Second Progress Report on its work recovering and disbursing Alpari UK monies (see link below to complete report).

The second progress report covers the period from July 19, 2015 through to January 18, 2016.

The Highlights:

  • To date Financial Services Compensation Scheme (FSCS) has taken assignment of 13,590 client claims and has paid compensation of $48.3 million to 10,444 clients.
  • KPMG estimates that client liabilities are $97.8 million.
  • Preferential creditors have been paid in full.
  • A dividend of 14p in the GBP was paid to unsecured creditors.
  • To date, KPMG has agreed unsecured claims of £14,085,602.
  • Alpari Shenzen has been successfully deregistered.
  • From the date of KPMG’s appointment to January 18, 2016, KPMG has incurred time costs and charged fees of £10,475,461 (about USD $15.2 million).

Alpari UK subsidiaries

Alpari Shenzen has been successfully deregistered and a sum of £3,108 remitted to Alpari UK. This concludes the winding up of this company.

Client debtors

In the period covered by this report, KPMG has realised £323,597 from debtors. These recoveries have been achieved from debtors based in 47 different countries.

Client portal statistics

To date, 94,355 clients have access to the Claims Portal representing 99.8% by value of clients.

To date, 14,068 clients have agreed their claim representing 94.7% by value of clients with a claim into the client money pool. There are 156 clients who have disputed their claim with a value of $1.7 million. KPMG has paid a total of about $49.9 million from the client money pool in respect of 11,209 clients, representing approximately 51% of the CMP (client money pool).

KPMG estimates total claims into the CMP to total $97.8 million. However, as 5.3% by value have not yet agreed their claim in the Claims Portal, the figure may fluctuate.

At present, KPMG estimates that the overall return to clients will be in the range of 75.0 cents to 80.8 cents in the $ (USD).

Further client money distributions

KPMG envisages that further client money distributions will be declared and paid in due course. However at this stage, the quantity and timeframe of such distributions is unknown. Clients will be notified of any further distributions and an update will be provided on the designated website

Unsecured claims

To date, KPMG has agreed unsecured claims of £14,085,602.

KPMG fees

From 19 July 2015 to 18 January 2016, KPMG claims to have incurred time costs of £3,199,798. These represent 8,135 hours at an average rate of £393 per hour. From the date of the firm’s appointment to 18 January 2016, KPMG has incurred time costs of £10,475,461.

You can view the full Progress Report by clicking here.

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