KPMG has charged more than $10 million in fees to Alpari UK bankruptcy administration


KPMG, the special administrators of Alpari (UK), the retail FX broker that got into trouble due to “Black Thursday” events, have earlier today published their First Progress Report, which covers their work for the period between January 19, 2015 and July 18, 2015.

The report concerns several important matters, including the progress on return of client funds and proceeds from selling of Alpari UK’s assets.

The highlights:

  • KPMG has charged more than $10 million in fees.
  • During the period, KPMG realised client money totalling USD 99.2 million.
  • Sale of Alpari UK client list to ETX Capital was for just £231,811 upfront.
  • Sale of Alpari Japan to Dukascopy was done for £1,675,000 (about $2.6 million).
  • Non-client creditors will only be paid after October 30.

Let’s mention some of the key sources of the realised money:

Sale of client data to ETX Capital (ETX)

ETX CapitalAn initial consideration of £231,811 was received and an additional amount will be received as deferred consideration later this year as a substantial number of clients have chosen to deposit funds and retain them with ETX.

Sale of Intellectual Property (IP) Assets

As previously reported, Alpari UK held trademarks, domain names and licences as part of its IP. A sale of the domain names and trademarks took place on 2 February for USD 6 million (£3,842,951).

Sale of subsidiaries

alparidukscopy1) Alpari Japan K.K. was sold to Dukascopy

A sale was completed on 5 August for £1.675 million plus the release of an intercompany debt of approximately £320,000 due to Alpari Japan.

2) Alpari Investment Consulting (Shenzhen) Limited

The wind down of this Chinese subsidiary of Alpari UK is progressing, with tax clearance and de- registration expected to be completed in the next few months.

Cash at bank

The administrators have now repatriated all house balances to the special administration estate, totalling £7.8 million.

Claims Portal

  • To date, 94,342 clients have access to the Claims Portal representing 99.8% by value of clients.
  • Any clients who do not have access to the Claims Portal should email [email protected] stating their name and account numbers.
  • To date, 10,859 clients have agreed their claim representing 89.6% by value of clients with a claim into the client money pool.
  • There are 111 clients who have disputed their claim with a value of USD 2.2 million.

FSCS

To date FSCS have taken assignment of 9,693 client claims and have paid compensation amounting to USD 36.6 million in respect of 8,660 clients.

Alpari UK debtors

There are two main categories of Company debtors as follows:

  • Historic debtors – Clients with negative cash balances as at 9.30am GMT, Thursday 15 January 2015 with no open or subsequent trades;
  • Current debtors – Clients with negative balances after trades had been closed out on their accounts during 15 and 16 January 2015.

debtors_inside

The next Progress report by KPMG is due in January 2016.

To view the First Progress Report, click here.

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KPMG has charged more than $10 million in fees to Alpari UK bankruptcy administration

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