FSA claims Network Data ARs were owed over £2m
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The regulator issued a second supervisory notice to Network Data Limited, subsidiary of Network Data Holdings, dated April 24 2009 which says that as of April 6 the firm owed £2,075,000.
Within the total owed, the document cites that £967,245.83 was overdue by over three months.
The notice says that the figure is based on information provided to the FSA by Network Data.
The document also reveals that the total amount owed was contested by Network Data, with the network saying that the actual figure owed was £1,343,162, of which £561,093 was more than three months overdue.
It goes on to say: “By the oral representations, Network Data stated that although it continued to dispute the FSA’s figures, it accepted the FSA’s statements on Network Data’s solvency.
“Accordingly, it acknowledged that Network Data was trading insolvently.
“It further acknowledged the FSA’s concerns as to Network Data’s failure to make adequate provision for its financial liabilities and the negative impact this would have on consumers and ARs.”
The document adds: “Network Data regretted that the current situation had been allowed to develop over a considerable period of time.”
It says that as a result the network had no other choice but to pursue prospective bidders interested in buying up the company’s headquarters, Botleys Mansion in Chertsey, in order to “salvage what is left of the business.”
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