Liquidator to challenge ISE over removal of Bloxham
THE liquidator of Bloxham Stockbrokers expects to challenge a decision by the Irish Stock Exchange (ISE) to revoke the failed broker's membership of the exchange.
The exchange ended Bloxham's membership yesterday, potentially costing creditors more than €6m.
As a member of the exchange, Bloxham had been in line to make about €6.3m when the exchange demutualises and becomes a limited company.
The broker, which collapsed in May amid accounting irregularities, had listed its membership of the ISE as an asset during court hearings following its collapse, and said it stood to gain from any move to demutualise the exchange.
Speaking to the Irish Independent yesterday, Bloxham's liquidator, Kieran Wallace of KPMG, said he expected to launch a formal challenge in the new year.
The ISE, which has six remaining members after Bloxham's removal, is said to be in advanced talks to demutualise after 219 years.
That move would see shares distributed to the stock exchange members and the exchange would, in turn, become a private company.
In a statement, the exchange said it had "revoked Bloxham's membership of the ISE".
Bloxham, the oldest stockbroker in the country, was ordered to cease trading by the Central Bank on May 27.
The broker's financial partner, Tadgh Gunnell, was suspended pending an investigation, after it became apparent that Bloxham's capital reserves had been overstated.
"The impact on the firm is that it no longer holds sufficient capital to meet the licensing requirements of the Central Bank to carry on trade as a stockbroker," Bloxham said at the time.