View more on these topics

Prospects looking poor for Keydata creditors

PricewaterhouseCoopers is still assessing potential litigation for Keydata investors with missing assets in SLS Capital but says dividend prospects for creditors in the insolvent firm are poor.

It has not decided whether to pursue litigation against Keydata directors, auditors or the custodian of assets placed with Luxemburg investment vehicle SLS Capital which could affect the return to investors. Joint administrator and partner Dan Schwarzmann says, based on Keydata’s current balance sheets and liabilities, it is unlikely that creditors will recover much money.

A Keydata creditors’ committee will decide with PwC what legal action is worth pursuing on a cost-benefit basis.

Schwarzmann says: “On SLS, there are some actions the company will be able to take and some the investors will have to take. But without the decision on possible litigation having been made, the dividend prospects for creditors look poor.”

PwC has made no further progress in locating missing SLS policies, in which around 5,500 individuals are invested.

The FSCS says it is too early to say whether it has a role to play.

PwC recently learned that a few hundred clients have not been properly invested in Keydata plans due to administrative errors.

Recommended

US: mid-year review and outlook

By Felix Wintle, Manager of the Neptune US Opportunities Fund H1 2014 Economic data: after last year’s strength, economic data has disappointed. Indeed, the economy contracted 2.9 per cent in the first three months of the year — the US economy’s worst performance for five years. However, rather than a symptom of underlying economic weakness or […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment