Collateral liquidator proposes investor payments framework and appeals deadline
Collateral’s liquidator has applied for court permission to set up a framework to administer interim investor pay-outs, including a deadline for appeals.
BDO said that it had been talking with the liquidation committee – a small group of representative creditors – about the possibility of making interim distributions to investors from the client money account and loan accounts.
BDO said it cannot confirm the final pay-outs yet as it is needs to realise the remaining assets of the collapsed peer-to-peer lender, as well as confirm the final costs of the liquidation.
The liquidator is proposing a framework to administer investor distributions. This includes how the claims will be adjudicated and a plan for how it will deal with any appeals from investors over its claims assessment.
It is also proposing a deadline by which investors must challenge the liquidator’s assessment of their claim, or by which previously unknown investors must have lodged claims in time to receive the proposed pay-outs.
“In summary, the directions being sought aim to create a framework that provides certainty for investors and the liquidation estates,” BDO said in the update.
BDO filed the application with the High Court of Justice Business and Property Court. on 22 March and an initial hearing is listed for 17 May.
Separately, in January, the City watchdog started criminal proceedings against Peter and Andrew Currie, two former directors of Collateral, with both facing two charges under the Fraud Act 2006 and one charge under the Proceeds of Crime Act 2002.
The two brothers will face a criminal trial in April 2023 after they both pleaded not guilty to all charges at Southwark Crown Court.