Today’s the day that scores of ‘victims’ of the collapse of foreign exchange company Premier FX hope to get a slightly clearer picture of whether or not they are ever to see any of the money they lost, from one minute to the next, on a deeply depressing day back in July (click here).
The furore that this scandal has unleashed across the Algarve has been splashed across national and international media – but for the last few weeks everything has gone horribly quiet.
Scores of local families affected by this disaster have been waiting for a ‘key meeting’ convened in London this morning by administrators PKF Geoffrey Martin & Co.
The plan is “to approve the Joint Administrators’ Proposals and certain resolutions”.
But it isn’t expected to be anything like this simple.
Many fleeced customers are highly dubious of the value of administrators as they feel the company should be put into liquidation straight away, not trawled through the (expensive) and ultimately academic process of administration.
And they are “perplexed” by news in PKF Geoffrey Martin’s latest report citing €140,000 worth of expenses, only €65 of which has gone into “recovery of assets”.
Answers from directors – the son and daughter of deceased founder Peter Rexstrew – as to where client money may have gone have been non-existent and will remain so for this meeting.
PKF Geoffrey Martin & Co have explained: “The directors have confirmed that they will not be attending the meeting”.
Thus for now it is a question of ‘watching and waiting’.
Many former Premier FX clients in the Algarve are being represented today by ‘proxy votes’ and have submitted questions that will be addressed to the floor.
The meeting is expected to go ahead all day, and the mood, since the start, has been “very uncomfortable”: remote links for those who have requested to listen in are not working properly, and when they do, listeners can only barely hear the chair. Fellow clients’ questions are going largely unheard.
Sources the Resident has in the meeting have said “there is likely to be a blow-up later on…”
Thus we will attempt to keep readers here updated over the course of the day.
UPDATE MIDDAY:
Administrators reveal that they have not yet interviewed the company directors, or former members of staff.
12.25:
Our source says:
“After two hours refusing to answer any questions about possible criminality (even though the FCA put out that statement about being very strongly concerned about criminality), Peter Hart has just made a slip: ” This misappropriation of funds has been going on for a long time …. ” and ‘customers have provided far more information’ than Premier FX’s paperwork which was “pretty poor” and we (Geoffrey Martin & Co.) have to ‘disregard these records’ as incomplete or not complete.
12.46
“People getting exceedingly angry re lack of tangible activity re investigation into directors and key people like Severine Edmundson and Nick Jones”.
13.02
“Administrators had to threaten Barclays with legal action to get information… Barclays apparently now cooperating, but a big question is “why is there a meeting with Barclays tomorrow AFTER this big meeting today?
“Administrators allow FCA representatives into closed CREDITORS’ meeting.
“No introduction was made of these ‘observers’ at the beginning of meeting. Feeling is that they are in meeting to gain information to refute any future claims against the FCA for their actions in this matter. (Remember, FCA only re-regulated PFX on 18 May this year, the day that Severine Edmundson and Katy Rexstrew had the new company set up in another area of financial services), and made no checks re the new directors in terms of suitability or background checks to be running a financial services company…
“My own feeling is that the FCA and Barclays will be THE story in UK …. ”
14.57
Voting now taking place to decide on whether to sack administrators and take on new firm Menzies, which would embark on voluntary joint liquidation in six weeks time.
15.05
Motion carried overwhelming.
Five names put forward for creditors committee.
Meeting brought to a close.
Says a second source listening to meeting remotely: “There was nothing more that could be discussed as the chair moved on to formal voting just after the lunch break. There also was no call for any other business at the end.
“We could scupper the whole process due the fact the FCA people were there, unannounced, in a closed creditors meeting but at least GM seems to be handing it all over now and then hopefully won’t be involved any further…”
Our original source has welcomed the meeting’s outcome, saying: “11 weeks by the Administrators and no interviews with key players (and £65 spent on asset recovery) is a joke. I voted for the bigger picture and the people who have lost far more than I even though to my detriment. As I said once to , I believe in justice …. whether Menzies deliver or not to the majority is unknown but the previous FCA appointed guys have done nothing”.
For a more complete rundown of the day’s proceedings, see a subsequent text. The Resident will try to get customer feedback, bearing in mind that a number of former Premier FX clients will have made long and complicated journeys to attend this meeting in the East End of London (Canary Wharf), and will now have to navigate their ways back.
