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Update on Silverpoint

After Silverpoint was put into voluntary liquidation by its former CEO Mark Cushway the court Administrator has completed his review process.

He concluded that the liquidation process could have been avoided had the company not been mismanaged by its directors and key personnel. He also uncovered a range of financial and management irregularities which directly contributed to the company’s demise.

This being the case he classified the liquidation as “culpable” meaning it was a negligent bankruptcy.

He makes it clear that the people responsible for the negligent bankruptcy are Mark Cushway, the former CEO of the company, and Diana Aitchinson the former CFO.

He also acknowledges the role played by Kwang Boon Sim. Although he was not an employee or Director of Silverpoint the Administrator recognises that there is sufficient evidence to support that fact that he played a significant and influential role in the company as a representative of Bob Trotta, his group of companies called the Limora Group, and later the heirs of Bob Trotta.

The Administrator also acknowledged the existence of “dubious” transactions between Silverpoint and Excel – a point CLA brought to his attention and something we have reported on in previous updates. https://canarianlegalalliance.com/update-on-silverpoint-liquidation/. Whilst the reversal of this transaction has been recommended by the Administrator the final decision still lies with the Judge presiding over the case.

Similarly Canarian Legal Alliance has requested that the liquidation of all other companies within the group be studied together thereby raising the overall asset value of the liquidation process.

Whilst all of this is good news for CLA and the clients we are representing we had hoped the Administrator would have gone even further. Firstly, the Administrator acknowledges the role played by Silverpoints legal advisors in this situation but he does not hold them accountable. Secondly, and more importantly, we had hoped that the corporate veil would be lifted in order to show the well-orchestrated decapitalisation of Silverpoint through companies such as Excel, Signalia, and Inversiones Oasis. Remember a previous investigation from the social security had clearly identified and highlighted the link between all these companies so for it not to form part of the Administrators report was surprising to us.

The State Attorney will now study the report and make his comments about it for the judge presiding over the case.

In the meantime, however, the good news is that CLA had previously reported all of this in a criminal report and are delighted that investigations have already commenced. You can see details of this on our website.  https://canarianlegalalliance.com/update-on-silverpoint-criminal-investigation/

We will keep you informed of all future developments, as the assessment of all the credits and assets is still ongoing.

July 14, 2021