Further, it is now likely that criminal proceedings will follow.
The total amounts to a £24m settlement to creditors less liquidators costs.
Settlement covers the following: Breach of undertaking, breach of trust, deceit/conspiracy, admin and liquidation costs, claimant's costs, interest.
Around £15m of that will likely be attributed to the breach of undertaking by the law firm.
This represents an impressive recovery for creditors.
The settlement would appear to confirm the belief that the Oldco was the victim of a criminal conspiracy.
Had the prima facie evidence available to all of us at the time been accepted by the governing bodies – from the Murray arrangement with Lloyds and the reality that the huge ‘debt’ being floated as a fact was closer to myth than reality (and, bondholders aside, almost entirely a matter of Whyte’s dealings with Ticketus and lack of short-term engagement with the tax process) – then much hurt and suffering would have been avoided.
Messrs Withey and Whyte will not have enjoyed their breakfast today.
More no doubt to follow in the days to come.