Grant Robert Graham and Neale Jackson of KordaMentha, who act as Liquidators of now defunct Forex broker BlackfortFX (aka Arena Capital Limited), have published their second report, updating investors about their actions.
The liquidators have focused on recovering assets and, according to their report (see table below) they have managed to obtain receipts of NZ$1.07 million (US$ 710,000). The sum looms humble, if we consider the fact that 925 former clients of the broker, which has never been actually active in the Forex industry, have lodged claims that BlackfortFX owes them a total of NZ$6.96 million.
The liquidators are grappling to get in touch with debtors – the clients that were paid by the broker but have to return the money as these payments are not actually profits (because the company was not actually a Forex broker). The sum that the liquidators are trying to collect from debtors is NZ$2.48 million in total. Thus far, only 21 of the 96 debtors have agreed to return “the profits” they were once paid by the broker. The bottom line is that the debtors have returned NZ$190,410 thus far.
KordaMentha have served legal notices on 12 debtors. The liquidators plan to take further legal action against debtors refusing to communicate with them.
One further complication relates to clients who deposited funds with the broker after New Zealand’s Financial Markets Authority (FMA) obtained Asset Preservation Orders (APO) for the broker in May last year. The clients want KordaMentha to repay their money (NZ$249,000 in total) and the High Court agreed with them last week. This means that what are already humble receipts will be further diminished, leaving less money for the other investors.
In tune with KordaMentha’s comments in its previous client update, the liquidators say it is too early to provide an indication of the potential return to Arena’s clients and creditors.
You can view the full report by clicking here.