An ongoing saga between Alpari UK clients and creditors, as moderated by KPMG, has reached a new turn Tuesday, with the first tranche of clients with negative balances being covered.
The latest announcement comes on the heels of last week’s Initial Resolution Meeting between Alpari UK clients and creditors, who voted on a number of measures on March 12. The voting saw overwhelmingly support in favor of resolutions for the approval of Joint Special Administrators proposals and for the formation of a creditors’ committee.
In a recently released KPMG statement, the first tranche of clients with negative balances is being notified following the latest developments in the ongoing mediation with Alpari UK. This tranche will cover all clients with negative balances for whom the Joint Special Administrators, consisting of Samantha Bewick, Richard Heis, and Mark Firmin have verified the available contact information.
However, this excludes clients that had open CHF trades after 9:00 GMT on Thursday 15 January 2015. At this juncture, clients falling into this category must await further updates from KPMG as the remaining resolutions are ongoing.
CCI Legal Services Limited Brought In to Assist
In addition to the latest developments on Negative Balance remuneration, the Joint Special Administrators have also appointed CCI Legal to help facilitate a recovery of the debts due from clients with negative balances. According to the KPMG manifest, CCI Legal is formally authorized to act on behalf of the Alpari UK and the Joint Special Administrators. CCI Legal will be contacting clients directly.
In terms of the handling of multiple accounts, clients holding more than a singular account with the Alpari UK will have them consolidated into a single net balance per individual.
KPMG Opts for GBP Uniformity
Contrary to an earlier report by KPMG whereby Joint Special Administrators stipulated a requirement to hold the pool in a single currency, given the uniformity of the USD across Alpari UK’s client funds and claims, the latest update will see all account balances converted to GBP at the official Exchange rate.
