LCF administration fees to pass £9m
London Capital & Finance’s (LCF) administrators’ fees hit £7.46m by 29 July and are expected to pass £9m before the end of the administration process in 2024.
According to the latest progress report, administrators Evelyn Partners – formerly known as Smith and Williamson – accrued fees of £579,399 between 30 January 2022 and 29 July 2022. This covered 1,027 hours at an average cost of £413 per hour.
To date, just over £4.5m has been drawn in fees by Evelyn Partners.
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“The joint administrators’ cumulative fee estimate up to the end of the fifth year of the administration (i.e. to 29 January 2024) is £9,090,855,” the administrators said.
“And as at 29 July 2022, cumulative costs of £7,468,260 have been incurred against this estimate.”
The report also confirmed that the Financial Services Compensation Scheme (FSCS) has now paid out approximately £58m to LCF bondholders under its own rules, as well as an additional £114m which has been paid through a dedicated HM Treasury scheme.
The administrators noted that the FSCS is now “the majority creditor of LCF, with a subrogated claim equating to at least 73 per cent of the outstanding capital sums that were invested by bondholders.”
Earlier this year, the FSCS extended the deadline for LCF bondholders to make a claim, as it waited for documents from some remaining investors.
Evelyn Partners reaffirmed its earlier estimate that secured creditors of LCF would eventually receive back at least 25 per cent of the funds owed to them.
However, the administrators said that it does not expect to have a surplus with which to pay any compensation to unsecured creditors.
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