Doubts cast on chance of recovering Citri debt
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Citri’s liquidator says it is unclear whether it can recoup any of the firm’s £1.8m liabilities.
Begbies Traynor was appointed liquidator on July 4 following the collapse of a rescue deal for the firm. It entered into liquidation after a deal to transfer 138 of its advisers to Openwork fell through.
Mortgage Strategy has obtained a copy of Citri’s statement of affairs, which shows it owes secured creditor HSBC £164,500 and unsecured creditors £788,870.
Unsecured creditors include Openwork, which is owed £650,000, Indigo Insurance Brokers which is owed £23,996, e-Financial Management, which is owed £8,640, and TrigoldCrystal, which is owed £14,748.
Overall, Citri has a shortfall of £1.8m with regard to its creditors, including members, when its liabilities are weighed against its assets.
But Andrew Haslam, partner at Begbies Traynor, says it is unable to say how much will be available for creditors because the firm still has a number of debtors and potential litigation action.
Secured creditors need to be paid before assessing whether there are funds left for unsecured creditors, such as advisers.
A number of former Citri advisers have transferred to Openwork but some were rejected because they did not pass the network’s vetting process.
Mortgage Strategy understands around 50% of the advisers have transferred, but Openwork says it cannot confirm any numbers.
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