WorldSpreads administrators look to courts

Michael Bow
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THE ADMINISTRATOR for defunct spread betting firm WorldSpreads yesterday said it was collecting evidence ahead of potential legal action to recover money owed to the firm’s creditors.

A forensic accounting team from KPMG has been appointed to pore over 24 terabytes of data including emails recovered from WorldSpreads to try and piece together how the firm collapsed.

It follows a meeting of the administrator’s creditors’ committee at the end of June to decide how money owed to creditors can be recovered.

KPMG partner and special administrator at WorldSpreads Jane Moriarty said: “With the agreement of the creditors’ committee, we have a forensic team collating evidence from a vast swathe of data extracted from WorldSpreads.

“Once we have reviewed the evidence, we will then be able to consider the recovery of money for the benefit of WorldSpreads customers through litigation.”

WorldSpreads went bust in March with just £16.6m left to cover money owed to clients totalling £29.7m.

The Financial Services Compensation Scheme, the lifeboat fund for customers of failed financial firms, is the biggest creditor to WorldSpreads having taken on the vast majority of claims.