Reports are emerging that talks have failed regarding a buyer for Alpari and KPMG will administer it. The company now applied insolvency.
Around $98.5 million of funds are segregated.
The special administrators are Richard Heis, Samantha Bewick and Mark Firmin
Richard Heis said:
Following the announcement by the SNB last week, Alpari (UK) Ltd sustained substantial losses as a result of negative client balances, and was faced with no other choice but to enter into special administration. We have had a number of enquiries from interested parties in relation to the company’s business. We will be speaking with these parties and others over the next few days, and hope to secure a deal to preserve the business and jobs as far as possible
Update: here is the updated message on the Alpari website that explains the special administrators:
Upon the application of the directors of Alpari (UK) Ltd, on Monday 19 January 2015, the High Court appointed Richard Heis, Samantha Bewick and Mark Firmin of KPMG LLP as joint special administrators of Alpari (UK) Ltd, under the Special Administration Regime (SAR). Alpari (UK) Ltd is a company incorporated in the UK.
Alpari (UK) Ltd applied for insolvency on Monday 19 January 2015 following the decision on Thursday 15 January 2015 by the Swiss National Bank to remove the informal peg to the euro at around 1.20 Swiss francs. The announcement by the SNB prompted volatility across the foreign exchange markets which saw the company and many of its clients make large losses. After a weekend spent in urgent discussions with various parties with a view to selling the company, these efforts were ultimately unsuccessful.
We have had a number of enquiries from interested parties in relation to the company’s business. We will be speaking with these parties and others over the next few days, and hope to secure a deal to preserve the business and jobs as far as possible.
There is still a chance that the company will be sold. KPMG will try to find a buyer and will manage the return of money to clients.
Recap of events
The action began with an announcement on insolvency on Friday, followed by a change saying the company has not entered a formal insolvency process. The company was trying to find buyers.
FXCM, that had trouble of its own was quoted as a potential buyer. Later on, there were reports that Pepperstone would buy Alpari UK.
By the afternoon and after no buyers had emerged, the company went into administration.