The liquidators of BBY now have the funding to pursue the directors and managers of the failed stockbroker.
Litigation finance company IMF Bentham says the liquidator, KPMG, has obtained approval for a litigation funding agreement to investigate and, if appropriate, pursue claims against certain directors and officers of BBY.
The initial claim value is $35 million.
“This is IMF’s best estimate of the claim’s recoverable amount, which may change over time and may be different in subsequent investment portfolios when they are published,” IMF said.
The messy fall of BBY has left client accounts frozen with millions of dollars owed but no simple way to get the money back. The trading accounts of BBY have a shortfall of about $17 million.
Executive chairman Glenn Rosewall, the son of the tennis great Ken, called in administrators on May 17 last year under the weight of increasing liabilities from BBY’s options trading business.
Both were directors of BBY.
All 170 staff were made redundant and are all creditors.