Tuesday August 7,2012 : WORLDSPREAD DIRECTORS MAY BE SUED (Update)
Creditors may take action against directors of failed spread betting company
The repercussions of the spectacular failure of UK internet spreadbetting firm Worldspreads are far from over, according to a report in the Guardian newspaper Monday, which reveals that the company's former directors could face litigation from the special administrators acting on behalf of creditors.
Founded in 2000 and listed on London's AIM market seven years later, Worldspreads was handed over to special KPMG administrators Jane Moriarty and Samantha Bewick earlier this year. The Financial Times reports that the administrators have started compiling evidence after being given the go-ahead by a committee of creditors.
"With the agreement of the creditors’ committee, we have a forensic team collating evidence from a vast swath of data extracted from Worldspreads," Moriarty said this week, noting that once the evidence has been compiled and reviewed, the company’s administrators will consider whether it has a case to recoup creditors’ money through litigation.
Earlier this year the criminal police were called in, but in the absence of further news it appears this option has been dropped.