Cost of Lexi administration nears £30m

KPMG’s administration of Lexi Holdings continues to rumble on with its fees topping £8.3m.

Now in its eighth year, the process has realised assets worth £42.3m – with £6.7m coming from negligence claims against Lexi’s former advisers – but this work has cost £28.4m, according to the latest creditors’ report.

Lawyers have also done well out of the case, charging £8.7m in fees.

Lexi was a Manchester property lender which collapsed in October 2006 with debts of more than £100m, weeks after managing director Shaid Luqman received a 15-year director ban for his conduct in running another business, Modern Living UK.

Shaid fled the UK in 2011 while wearing an electronic tag after being found guilty of passport fraud offences. His younger brother, Waheed is wanted by the police having been jailed for seven-and-a-half years in his absence last January.

Both are believed to be in Pakistan with other family members where the administrators are seeking to freeze assets through the courts. Court orders have now been issued covering worldwide assets worth £260m. KPMG said judgements have also been obtained against a further 15 related parties and associates.

Last year TheBusinessDesk.com discovered Shaid Luqman had launched a high-end fashion boutique called La Societe in Lahore, Pakistan.