After the first initial clients and creditors meeting resulted in a hurdle for the bankruptcy process of LQD Markets, the second has successfully resolved the matter. Several days ago, the company’s creditors have rejected the bankruptcy proposal by special administrator Baker Tilly.
At the second vote 76% of the creditors funds voted in favor of the bankruptcy resolution proposal totaling £239,582, with the remaining £55,316 voting against.
In January LQD Markets was one of the first companies who fell victim to the Swiss National Bank (SNB) induced foreign exchange industry debacle. While the management of the brokerage was exploring its options to stay in business, the company got another hit from an error on its platform, just as the Asian markets were opening for a Monday morning trading session around 23:00 GMT.
Separating Yourself From the Pack in a Mature FX IndustryGo to article >>
Subsequently, at the initial clients and creditors meeting, votes worth £826 represented 91% of the vote of the creditors of LQD Markets. This was enough to reject the special administrator’s proposal about how to handle the company’s bankruptcy. A new meeting with the creditors of LQD Markets has been set up for the 20th of April of 2015.
Due to the client money shortfall, the outcome of the second meeting could have been easily forecasted. Due to the client money shortfall, clients could vote in their capacity as creditors to remove the £826 obstacle.
According to estimates made by Baker Tilly their vote totaled to approximately 60% of the total amount of the client money claim. Ultimately, the stubborn creditors holding the golden £826 have had to let go of their resistance to the bankruptcy process proposed by the special administrator of LQD Markets.
With the current distribution of votes, the creditors will have little opposition to the remaining resolutions proposed by Baker Tilly in the original announcement.