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Keydata says contract allowed SLS to delay payments

Keydata says that a clause in its contract with SLS Capital put in place by David Elias legally allowed his firm to delay making quarterly income payments by up to 90 days.

Keydata says it covered an income shortfall to investors after payments were delayed from SLS Capital to prevent them from “losing out” during the gap.

Administrator PricewaterhouseCoopers says in recent days it became aware that income from £103m invested in Keydata plans with Luxembourg investment vehicle SLS Capital had not been paid since October 2008. The income shortfall to investors had been filled by Keydata’s own corporate funds.

A Keydata spokesman says: “Keydata had an obligation to pay the income within five days of the due date for investors. MeesPierson were given 20 days to pay and so there could be a lag.

“This is a moot point in that October 2008 income and the next payment was paid, but very late. The March payment from SLS was likewise very late, but events have spun out since then to make it sort of obsolete.

“Keydata covered the payments to prevent investors losing out during the gap.”

Keydata says it was getting quarterly payments from SLS Capital, albeit late and was not aware that money had disappeared from the products.

The firm says that upon questioning SLS Capital on the delays it was “thrown back legal answers saying we can do this” because it was contractual.



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