The Independent Valuer appointed to evaluate any possible compensation due over the Bradford & Bingley’s takeover by the Treasury has dealt a blow to shareholders.
Peter Clokey, the independent valuer appointed under the Bradford and Bingley plc Compensation Scheme and a partner of PricewaterhouseCoopers LLP, has upheld his original determination that no compensation is payable by the Treasury to former shareholders or those who held subscription rights to shares of Bradford & Bingley plc.
Any person who was dissatisfied with his Assessment Notice was able to write to him by 27 August 2010 to request reconsideration of his determination. Approximately 8,000 of the 930,000 former shareholders wrote to Clokey over this period. These letters included requests for consideration that submitted arguments and evidence for consideration.
After consideration of all these submissions and having regard to the statutory assumptions under which he is appointed, Clokey remains of the view that his original determination is correct.
Clokey requested and reviewed additional information from Bradford & Bingley and from the tripartite authorities. This information has assisted him in confirming his view that the liquidity position of Bradford & Bingley would have prevented it from continuing as a going concern and that, if HM Treasury had not used its powers, it would have applied to Court for an administration order.
Clokey has also provided further information in relation to his conclusion that an administration of Bradford & Bingley would not have generated sufficient cash flows to create a surplus that would become available for distribution to shareholders.
Thus Clokey has upheld his view that ordinary shares in Bradford & Bingley had no value immediately before the transfer of those shares to HM Treasury.
