Castle Trust & Management Services Ltd (in Liquidation) – An Update on the Liquidation with PwC Appointed Liquidators

Insolvency & Law Ltd sits on the Creditors Committee for the Administration and now Liquidation of Castle Trust & Management Services Ltd (CTMS). Our dedication to advocating for the HSG Loan Note Holders and other related parties remains steadfast. Despite facing numerous challenges and occasional detours.

Our Commitment and Challenges

From the onset, we have fully supported the transition from Administration to Liquidation. We have also cooperated with PwC’s requests throughout this process. In our efforts to resolve the matter of the Professional Indemnity (PI) insurance, we have held several meetings with Edgar Lavello and Anita Krishna to address the complexities involved.

One of the most significant hurdles we face is the secretive nature of the PI Insurer’s identity, as well as that of the broker. The broker, shielded by their lawyers DAC Beachcroft, demands that any claim particulars be directed to the lawyers first. Even basic questions, such as whether Castle Trust had PI coverage during the relevant period, have required persistent follow-ups to confirm an affirmative answer.

PwC is cautious about not antagonising the broker or the insurer. There is a fear that such actions could invalidate the insurance due to the broker’s threats. However, it is troubling that insurers can impose such stipulations and enforce them. This situation undermines our trust in regulated service providers.

The Ongoing Battle

We remain undeterred in our mission to hold the PI insurers accountable. Despite the obstructions and occasional sideways steps, our resolve to bring a claim against the PI insurers of CTMS for the HSG Loan Note Holders and other related parties is unwavering. The lack of transparency and the obstructive behaviour from the insurer and broker have only strengthened our determination.

Through our own investigative efforts, independent of PwC, we have identified the insurance broker, who operates from another offshore jurisdiction. This discovery was not without its challenges, and it highlights the opaque nature of the insurance arrangements surrounding CTMS. The fact that such crucial information had to be unearthed independently raises serious concerns about the regulatory oversight in this sector.

Looking Ahead

Despite these obstacles, Insolvency & Law remains resolute in our mission. We are committed to ensuring that justice is served, and that the rights of the HSG Loan Note Holders and other stakeholders are protected. The journey is far from over, but our determination is stronger than ever.

Stay tuned for Part 2 of this blog, where we will provide further updates on our progress.