Arc Capital & Income administrator to release client funds

The High Court has authorised the administrator of former structured product provider Arc Capital & Income (ACI) to distribute remaining funds held by the company.

In January, the FSA gave Carter Backer Winter permission to release the funds held in ACI's client accounts. However, CBW said it had to delay payments until mid-March while it awaited instructions from the courts.

CBW has now said approximately 2,400 investors still awaiting their funds will receive back 98.37p in the pound.

The Court has also directed the Join Administrators' reasonable costs should be deducted in priority to the claims of the investors subject to a limit of £138,525,75 plus VAT.

In a letter to investors, CBW joint administrator Robin Davis says: "The Court has not conducted any forensic investigations into the level of the Joint Administrators' costs, expenses and remuneration incurred in dealing with the funds.

"The reason for this was to try to restrict the costs that would otherwise have been incurred in conducting such an investigation.

He adds: "Any investor wishing to make such application should, however, be aware that they may not be entitled to recover their costs of making such an application and that an award of costs may be made against them if their application is unsuccessful."