Information about client entitlements in relation to BBY Limited (Receivers and Managers appointed) (in Liquidation).
Information about client entitlements in relation to BBY Limited (in Liquidation).
28 September 2020
An interim cash distribution in respect of client entitlements was paid on Thursday, 24 September 2020 via Link Market Solutions. Notification and further details have been issued by email. More information about the distribution is set out below in our update of 21 August 2020.
11 September 2020
We refer to our update on 21 August 2020 announcing an interim cash distribution to former clients of BBY in relation to client entitlements.
This payment will be processed via Link Market Solutions and is scheduled to be made on 24 September 2020. Clients will receive notification and further details via email.
We refer to our update on 9 April 2020 at Client Monies: Court Proceedings.
We are pleased to announce that a first interim cash distribution will be made to former clients of BBY in relation to client entitlements.
There are approximately 6,000 former clients of BBYL with claims of $64 million against client assets.
We have completed the Court ordered process of verification and adjudication of client claims.
We have provided written final determinations to those clients who disagreed with the records of their claims. Where we rejected any portion of a client claim, those clients had 28 days to make an application to Court challenging our final determination.
A notice of the intended distribution of funds in the client segregated accounts of BBY was published in the Australian on 16 June 2020.
Participating clients include all clients who agreed their claims according to the records of BBY and those we admitted for a different amount, however excludes Erroneous Withdrawal and Erroneous Deposit clients, who were previously paid entitlements in accordance with separate Court orders, as well as client claims of $100 or less.
Certain clients with Australian exchange-traded securities, such as listed shares and options, were entitled to make a claim against the National Guarantee Fund administered by the Securities Exchanges Guarantee Corporation (SEGC). To the extent the SEGC paid a client claim, it has a subrogated claim in the liquidation and will receive the corresponding share of the distribution.
The interim and estimated total cents in the dollar rates of return against client claims are set out below by product line.
(Futures, FX, Saxo, Other)
|Estimated total cents in the dollar return||73||59||26||44|
|First / Interim
|Estimated remaining to be paid at a later date||10||9||4||6|
The estimated total returns take into account and are net of actual and forecast future costs of administering the client segregated accounts including costs relating to the Court directions proceeding as well as recovery costs and costs relating to verification, adjudication and distributions.
The first distribution represents approximately 85% of estimated total returns to clients. The total of funds available in the first distribution is approximately $21 million.
In the next three weeks, participating clients will receive an email notifying them of the amount of their respective interim distribution, which will be deposited into their nominated account via electronic funds transfer.
There remain a number of tasks that the liquidators must complete before we are in a position to pay a final distribution. This includes obtaining some administrative court orders that may influence the final rates of return by product line. The expected impact is minor and therefore has not been modelled here. We will also seek Court approval of and settle final expenses including our remuneration, our legal costs and some remaining costs of representative defendants in the directions proceeding. We expect to pay a final distribution in mid-2021.
What to do if you have not verified your client details
In May 2019 we asked clients to update their contact and banking details and either verify their entitlements or, if they disputed BBY’s records, make a claim. The Client Portal is now closed and, in accordance with Court orders, clients may no longer dispute the details of their claims as stated in the BBY records.
A large number of clients have not yet updated their contact and banking details. This is required before we can pay distributions. If you wish to provide these details please send an email to BBY@kpmg.com.au and we will provide further instructions.
Interactive Brokers clients – tracing claims
A number of former BBY clients with claims in respect of the IB product line administered by Interactive Brokers have, as permitted by Court orders, elected to seek the return of IB assets in their present form (eg as a share or option), rather than sharing in sale proceeds of the IB product line assets.
These clients are required to pay a proportionate share of the liquidation costs, as well as various transfer costs, before IB assets can be conveyed to them. An indication of the estimated costs was provided in December 2019 to those seeking the return of assets. We will write to IB clients, who have sought the return of assets, in the next 14 days confirming the costs to be paid and providing instructions to complete the asset transfers.
Should you have any questions in relation to the above, please contact us by email at. This email is monitored by our staff and we will endeavour to reply within 7 business days.
4 September 2019
The Court approved process for verification and adjudication of claims in respect of client entitlements commenced on 24 May 2019.
If you believe you are entitled to claim against BBY and have yet to lodge a claim, this is a reminder to do so by 20 September 2019. Otherwise your client entitlements will, pursuant to orders of the Court, be taken to be in accordance with details extracted by the Liquidators from BBY records.
Please refer to our update of 24 May 2019 for further details.
24 May 2019
The Court approved process for verification and adjudication of claims in respect of client entitlements has commenced.
Former clients of BBY Limited will receive this circular by email (or post where email details were not held). This explains what you need to do in order to make a claim. Please read the instructions carefully.
If you have not received a circular (for email, by Tuesday, 28 May 2019 or otherwise by post) please contact Link Market Services on 1300 868 464. If we do not have your email details the circular will have been posted to you. This could take up to 7 days within Australia or longer for overseas addresses.
A Client Claims Portal at https://events.miraqle.com/bby (hosted by Link Market Services) has been created to assist in the process of verifying and adjudicating client claims and making distributions in relation to client entitlements (the Distribution Process). The Portal has been established in accordance with Orders of the Supreme Court of New South Wales dated 26 November 2018 on behalf of the Liquidators of BBY Limited, Stephen Vaughan and Ian Hall of KPMG. A copy of the Court Orders and other background documents, can be found here – Client Monies: Court Directions Proceedings.
Please note that the Court has ordered that clients with client entitlements of $100 or less are not entitled to participate in the Distribution Process due to the costs of processing such claims.
Attached to the circular is a notice from Link Market Services with a personalised Holder Reference Number (HRN). You will need the HRN in order to access the Client Claims Portal. You should keep your HRN confidential to prevent unauthorised access. If you have not received your HRN, please contact Link Market Services on 1300 868 464.
You will be able to update your contact and banking details and either verify your entitlements or make a claim via the Portal.
If your claim is for $1,000 or greater, you are required to provide a certified proof of identification. Refer to the Proof of Identity Information Sheet enclosed with the circular and on the Portal for further details.
If you disagree with your claim details set out in the Portal, you will be required to submit a Claim Form (enclosed with the circular and available on the Portal) along with substantiating documentation. If your claimed entitlements are greater than $50,000 you will be asked to provide additional documentation.
In the event that you are unable to access the Client Claims Portal (e.g. because you have no access to the internet), you will be able to complete the claim process by returning a Claim Form and supporting documentation by post to:
Link Market Services
PO BOX 3184
Rhodes, NSW 2138
Former clients with claims in respect of the Interactive Brokers (IB) product line may contend they are entitled to a particular asset or assets in specie, via tracing. This means such clients have the opportunity to seek the return of particular IB asset(s) in their present form, rather than sharing in the proceeds of the IB product line assets, if they can prove the necessary legal elements to the tracing claim.
If you wish to make a tracing claim you will be required to complete a Claim Form and submit it directly to Link Market Services along with relevant supporting documentation. Assets subject to tracing claims will not be liquidated and you will be excluded from any distribution of funds until the claim is determined.
The adjudication and processing of IB tracing claims will involve additional costs and time. In the event your tracing claim is successful, you will be required to pay various costs including the cost of transferring the particular IB asset to you. Further explanation is provided in the Client Claims Portal.
Verification of entitlements and claims can only be made in accordance with the Distribution Process and instructions set out in the circular.
Please direct any questions regarding the claims process to Link Market Services by phone on 1300 868 464 or via email via firstname.lastname@example.org.
Once all client claims have been verified and adjudicated, and various other steps set out in the Court Orders have been taken, cash distributions will be made to clients from available funds. Refer to the circular for further steps required before distributions can be made. The earliest date for distributions is likely to be late in 2019. We will provide further updates for clients on this website and inform clients when distributions are likely to commence.