Krono Partners administration update – the wait for dividends from Company X continues

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Krono Partners went into administration in September 2018. Unusually for an unregulated investment going into administration, its management claims there are more than sufficient assets to meet its debts, but after bank accounts operated for the company by Jade State Wealth were frozen, it became unable to maintain payments to investors.

The last update revealed that the repayment of investors’ funds was almost entirely dependent on a “Company X” operating an Exchange Traded Note platform, in which Krono had invested in return for a cut of any funds raised via that platform.

As at the latest update, filed by the administrators Smith & Williamson in April 2019, no such cuts have yet been received. Indeed the only funds recovered since the last update are £4,041 in cash in the bank.

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Krono Partners administration report: £4 million of investors’ money depends mostly on a “Company X” in the Cayman Islands

Krono Partners logo

Last month the administrators of Krono Partners, top-10 accountancy firm Smith & Williamson, published their initial report into the company.

Smith & Williamson was appointed after Krono Partners stopped paying interest on its bonds in March 2018. This was apparently due to bank accounts operated by Jade State Wealth, a subsidiary of Krono’s escrow partner Accounting Worx Limited, being frozen.

Why Krono Partners has been unable to find another payment administrator, if this was the only thing preventing it from making payments, and has had to undertake the dramatic (and expensive) step of going into administration, is not addressed by the administrators.

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