The transfer of frozen trading accounts out of failed stockbroker BBY has hit a hidden wall in a dispute with an internet provider.
Sources say Indicium won’t switch services back on until it receives further payment.
This means further delays in unlocking millions of dollars in BBY client funds and thousands of accounts frozen when the broker went into administration on May 18.
The administrators, Stephen Vaughan and Ian Hall of KPMG, are in the process of transferring accounts so that former clients of BBY can get access to their funds.
The sources say Vaughan and Hall thought they had a deal with Indicium but this collapsed at the last moment.
The administrators need the internet turned back on so BBY clients can get access to their HINs (Holder Identification Numbers) which are needed to transfer accounts to another broker.
George Wang’s AIMS Financial has taken over what’s left of BBY and is keeping the brand BBY.
AIMS Securities is changing its name to BBY Asia Pacific Group to enable BBY’s 56,000 clients to restart trading.
The dispute over internet charges will delay that process.
BBY went into administration under the weight of increasing liabilities from its options trading business.
All 170 staff at BBY have been made redundant and are all creditors. Some have been rehired at AIMS.