FNG Exclusive… FNG has learned via court filings made in Australia that the liquidators of bankrupt Retail FX and CFDs broker Prospero Markets now expect that repayment of funds to former clients of the company will be delayed, and will likely not be effected until about June 2025.
We had reported back in October that a previously projected between-September-and-November 2024 timeline for clients of Prospero Markets to get their money back was going to be delayed, after the Judge overseeing the case ordered a Contradictor to act in the proceedings.
Contradictor
A Contradictor’s role is to assist the Court in a bankruptcy filing by making counterarguments against the appointed Liquidators, and present a “balanced view” on issues involving competing interests. Contradictors are commonly joined to proceedings of this nature where there are no defendants.
Next steps and Timeline
According to the Liquidators, BRI Ferrier, in response to enquiries about expediting the hearing dates to return Prospero Markets client money as soon as possible, the proceeding was reallocated to a new docket Judge with earlier availability. A case management hearing was scheduled before the new docket Judge, Justice Moore on 4 February 2025. Prior to the case management hearing on 4 February 2025, BRI, as the Liquidators, and the Contradictor Mark Wilson from W Advisers, agreed on case management orders which were submitted to the Court on 31 January 2025.
The hearing date for the application was originally listed on 1 and 2 April 2025. By consent between BRI and the Contradictor, the hearing date is now listed for 10:15am on 26 March 2025 with an estimated duration of two days.
BRI noted that the distribution of client money will be unable to occur until judgment is received following the conclusion of the final hearing on 26 to 27 March 2025. The proposed distribution process envisages an additional period for any disputed claims to be resolved before funds are distributed. The timeline for distribution remains unchanged, around June 2025, assuming judgment is handed down promptly and no creditors commence proceedings to dispute their Admitted Entitlement Notices.
The Liquidator added that it has been informed by Australia regulator ASIC of feedback and certain complaints made by some clients in relation to issues they perceive have arisen during this Court application process.
We will continue to follow this story as it develops.
