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KordaMentha BlackfortFX liquidation update: Distribution decision via Court
24/02/2017
KordaMentha BlackfortFX liquidation update: Distribution decision via Court

KordaMentha BlackfortFX liquidation update: liquidators applied for distribution direction with the Court just yesterday. How will the funds be distributed?

24 February, AtoZForex The liquidators of New Zealand company BlackfortFX aka Arena Capital, KordaMentha have published the Liquidators’ Fourth report yesterday.

KordaMentha BlackfortFX liquidation update

BlackfortFX has promoted itself as a Forex company since the start of its operations in 2014. However, the firm has never actually traded in the Forex market. So far, liquidators have been concentrating on recovering funds from debtor clients. These clients have received made up profits from the firm. Additionally, the KordaMentha focused on realizing assets of BlackfortFX.

As per the latest report, which appeared yesterday, liquidators have now agreed upon repayment arrangements with 40 out of 96 debtor clients. Specifically, the total recoveries from debtor clients now stand at NZ$718,000.
Furthermore, KordaMentha is planning a temporary distribution to creditors.

Liquidators have filed an application for the guidelines with the Court on the 22nd of February, current year. They are suggesting that all of the recovered funds of Arena would form one common pool of assets. This pool would be used for distribution for both investors in Arena and other unprotected creditors. The official statement from the report is as follows:

“These assets will be distributed on a pari passu, pro rata basis amongst investors and creditors.”

Such distribution would imply 34 cents on the dollar for each investor and creditor.

Pre-story of BlackfortFX case

Back in July 2015, the New Zealand court has agreed with BlackfortFX’s receivers from KordaMentha that the company should be liquidated. Earlier on the 13th of July, 2015 the receivers already clarified that assets of BlackfortFX will have to be liquidated, in order to meet obligations to clients.

The receivers of fictitious New Zealand finance company, Arena Capital Limited, moved into a liquidation phase on last Friday after publishing a report confirming claims that the company has been cheating investors.

The latest update before yesterday’s came one year ago. The time, KordaMentha has gathered all of it client’s accounts through their transactions processed by Arena bank. Based on previous evaluation the broker transacted with an estimated 750 clients, recent updates now shows that about 1,100 clients’ claims to have transacted with the broker.

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