KPMG recovers £2m from Lexi advisers
ADMINISTRATORS handling the collapsed property finance company Lexi Holdings have raised a further £2.13m from negligence claims against the firm’s former advisers.
Lexi, led by managing director Shaid Luqman, failed in October 2006 with debts of more than £100m.
A report by administrators at KPMG states the firm has made five claims and four have now been settled.
The latest figure, secured in the six months to April, is on top of £3.85m raised from earlier action.
KPMG was pursuing a £50m claim against the Manchester lawyer Pannone, which advised Lexi on bridging loans and credit facilities from Barclays Bank, but the two parties reached an agreement in February. Pannone said it had not paid damages and each side covered their own costs.
Administrators have so far recovered around £45m, but the cost of achieving this has topped £25m, a figure which includes legal fees of more than £10m and KPMG’s own bill of £10.3m.
Mr Luqman, his father and three siblings are facing court judgements for debts worth a total of £260m. Judgements have also been obtained against 15 related parties and associates as the administrators seek to claw back assets. Administrators are also chasing assets in Pakistan.
