GFSC launches probe into ‘unprecedented’ £96m collapse of Enterprise

The 10 directors of Enterprise Insurance, including its former chairman, are to be the focus of a major investigation by the Gibraltar Financial Services Commission following yesterday's disclosure in the Supreme Court that the firm, which was placed in provisional liquidation in July this year, was “hopelessly insolvent” to the tune of more than £96 million - almost four times as large a sum as was initially thought.

The Commission has also called for the directors who hold regulated positions in other companies to voluntarily stand down from these directorships until its investigations are completed.

Reviewing the liquidator’s report, Mr Justice Adrian Jack said that there was still “a large number of uncertainties”, including claims which had not yet been reported. Citing the various assets and liabilities uncovered by the liquidator thus far, Judge Jack pointed out that the total deficit – that is, the difference between liabilities and assets - was £96,453,948.

At the hearing, initially held to receive the provisional liquidator's report and to appoint Freddie White of Grant Thornton as liquidator at a fee of £325 an hour, Mr Justice Jack accepted the argument of Guy Stagnetto, QC, endorsed by Sir Peter Caruana, QC, that publication of the liquidator's report should be delayed for seven days to give those mentioned in the document time to read, comment on it and possibly request redactions.

FULL STORY IN OUR PRINT AND E-EDITIONS