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Nadir to face fresh creditor claims 31 August 2010

Nadir remains an undischarged bankrupt, and those working on behalf of creditors say they can seek to seize even those assets acquired or generated since his bankruptcy in 1991 and his unauthorised departure from the UK 17 years ago.

It has emerged that creditors have received little more than £70m. Out of the £2bn debts Nadir left behind partners at PricewaterhouseCoopers and Deloitte have estimated that £500m went from Polly Peck to companies or bank accounts in Northern Cyprus and Turkey where creditors have failed to claim money.

They have recovered about £210m across the group, most from the sale of foreign businesses in the Polly Peck group including Del Monte, Russell Hobbs and several hotels.

Much of the rest of the outstanding debts went to support lossmaking operations, and reflected acquisitions that could only be sold at a loss.

Kevin Hellard, partner at Grant Thornton who is running Nadir’s personal bankruptcy, is studying reports Nadir had business interests and led an opulent lifestyle in northern Cyprus.

Nadir returned to the UK on a private jet last Thursday and is currently staying in rented accommodation in Mayfair at £20,000 a month and had to fork out bail money of £250,000. 

Hellard told the Financial Times that since 1991 he has been able to secure and liquidate less than £1m in assets to pay off creditors owed £375m by Nadir personally, including the UK tax authorities and a range of banks.

The largest claim is from a group of creditors of Polly Peck, the holding company, which went into administration in 1990. Partners at PricewaterhouseCoopers and Deloitte handling the case estimate that £263m went to Mr Nadir or companies he controlled.




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