An agreement was reached between Prestbury and rival network Personal Touch Financial Services to transfer up to 80 appointed representatives back in September.
A statement issued this morning by non-executive director David Anderson that not all of the anticipated 80 ARs have made the transfer. Some have chosen to go with another network while some have not managed to agree terms with Personal Touch.
It reveals that life companies are withholding commission in lieu of unpaid claims relating to clawback commission.
The statement reads: “Certain life companies have made claims for clawback commissions on Prestbury in respect of policies written by ARs which have now been cancelled.
“This has had the effect of the life companies withholding payment of commissions which were expected to be received by Prestbury.”
Prestbury claims it is owed an additional £360,000 by ARs who have been unable to pay.
It has also confirmed the outstanding £850,000 by Prestbury Investment Management, Prestbury’s packaging subsidiary.
The statement adds: “The company has no cash resources of its own and is unable to publish the interim results for the six months ended 30 June 2008 and satisfy the company’s nominated adviser as to its financial position and its appropriateness to remain on AIM.”
A court hearing ruled yesterday to grant a winding up petition to a Prestbury creditor and an official receiver has been appointed.
John East & Partners, Prestbury’s nominated adviser, has resigned from its position with immediate effect.
If no replacement is found by January 18 2009, the company’s shares on AIM will be cancelled.
Even if a nominated adviser is secured within this period, trading in the company’s shares will remain suspended until its six-month interim results to June 30 2008 are announced.
The final date for the company to fully reveal the extent of its financial position and its interim results is March 10 2009, after which point the company’s shares on AIM will be cancelled.