Close to 1500 clients of failed broking firm Sonray Capital Markets (Sonray) could miss out on distribution of recovered funds under orders set down in the Federal Court of Australia.
In a letter to Sonray investors, dated 21 February, a representative from the company's liquidator, Ferrier Hodson, said as part of the orders, 1328 Sonray client accounts would not be entitled to financial distribution, due to their account balances being $50 or less.
"There are 1328 Sonray client accounts with a balance of less than $50. The average balance of those accounts is $6.76," George Georges said.
He said once the unfunded transactions from "affected Sonray client accounts" are removed he will publish a list on the Ferrier Hodgson website which sets out the liquidators' views of each Sonray clients account balance.
Sonray clients will be notified by a further circular when that list is published, he said.
"If a Sonray client disagrees with the account balance published in that list it will be open to that Sonray client to provide additional evidence within 21 days as to why a different account balance should be used. The liquidators will have 28 days to consider that additional evidence," he said.
"If a Sonray client has multiple accounts with positive and negative balances those balances will be set-off. If after the set-off the balance remains negative the Sonray client will have to pay that amount."
Georges said in light of the court orders, Ferrier Hodson will consult with Sonray's committee of inspection about whether or not to appeal any aspects of the orders.
"Additionally, the liquidators are concerned to ensure that the available assets are distributed appropriately and are concerned about the apparently different outcomes for shares held on the Interactive Brokers platform and the shares held on the Saxo Trader platform," he added.
The hearing of the application occurred over 24 October 2011 to 27 October 2011 and 2 November 2011, the letter said.
