Blackmore Bond administration costs near £3m
The cost of the Blackmore Bond administration has almost reached £3m, but bondholders have been warned that they are “expected to suffer a substantial shortfall in the value of their security,” by liquidators Kroll.
In the latest update, published on Companies House, Kroll revealed that the cumulative costs of liquidation and administrator expenses had reached £2.9m.
The former joint administrators incurred time costs of just over £1.73m during the administration process. This represented 4,044 hours at an average hourly rate of £428.
The joint liquidators incurred total costs of £820,622.
Read more: FCA admits “human error” on Blackmore Bond supervision
Meanwhile, the total cost of expenses added up to £362,145, with just over £100,000 paid to date.
The latest report from Kroll stated that all properties associated with Blackmore Bond have now been sold, and a total of £271,837 has been realised by the company’s special purpose vehicles.
It was also revealed that the former joint administrators have “complied with their statutory obligation to file a report with BEIS regarding the conduct of all directors of the company who serve in the three years prior to the administration.” The contents of this report are confidential.
Elsewhere in the report it was noted that Blackmore’s former chief executive Philip Nunn declared bankruptcy last year.
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“The joint liquidators have remained focused on their ongoing investigations into the company’s affairs,” the report stated.
“The details of which are largely sensitive and cannot be disclosed at this stage, since doing so may prejudice the outcome.”
Earlier this year, the Financial Conduct Authority (FCA) has admitted that “human error” contributed to its failure to protect investors in collapsed mini-bond provider Blackmore Bond.
Blackmore Bond went into administration in April 2020, with thousands of investors being told that they will not receive any money despite being owed over £46m.