FNG Exclusive… FNG has learned via court filings made in Australia that the liquidators of bankrupt Retail FX and CFDs broker Prospero Markets now expect that repayment of funds to former clients of the company will be delayed, beyond a previously projected between-September-and-November 2024 timeline.
BRI Ferrier, liquidators for Prospero Markets, revealed that the Judge overseeing the case, Justice
Cheeseman, has ordered Ms Yuya Huang and Mr Lei Zhang be joined as defendants to the proceeding, and that BRI appoint a Contradictor to act in the proceedings.
The Contradictor’s role will be to assist the Court by making counterarguments against BRI as Liquidators, and presenting a balanced view on issues involving competing interests – such as whether BRI’s remuneration and legal fees are paid out of trust funds or general liquidation funds. Contradictors are commonly joined to proceedings of this nature where there are no defendants.
BRI has identified legal representatives, W Advisers, as a suitable Contradictor for these proceedings.
BRI states that the result of the Court’s orders will be delays to the distribution process and additional costs being incurred – meaning that BRI will be unable to distribute the client monies by November 2024, as previously forecast. The liquidator said that it will provide more specific information on the updated timeframe for the distribution to clients once the new timetable is set with the Court. The next case management hearing is set for 17 October 2024, which will take place in person at the Federal Court of Australia in Sydney.
In our last report on the Prospero Markets bankruptcy case, back in July, the liquidators indicated that they expect that most if not all properly identified client funds will be ultimately refunded, totaling in the neighborhood of $20 million. That apparently hasn’t changed, although as indicated above the timeline is likely to be extended before former Prospero clients receive their cash.
Prospero Markets had its ASIC AFS license suspended and was effectively shut down in late 2023, as its ownership was caught up in an Australian Federal Police action against a major China-based money laundering ring.
