Court fast-tracks Bloxham move to force stock exchange U-turn

The liquidator of Bloxham stockbrokers has claimed its €6 million value on the Irish Stock Exchange (ISE) was set at nought after its membership of the exchange was revoked.

Mr Justice Peter Kelly agreed yesterday to fast-track in the Commercial Court two sets of proceedngs by liquidator Kieran Wallace challenging the revocation decision made last December.

The judge also suggested the matter might better proceed via one action rather than both by judicial review proceedings and plenary action as of now and he asked both sides to consider that.

Counsel for the Irish Stock Exchange consented to the case being fast-tracked but said it did not consider the matter was appropriate for judicial review as it did not relate to a public law decision taken on foot of statute. The exchange may seek determination of a preliminary issue on that point.

Rossa Fanning, for Mr Wallace, said the sides had agreed on an exchange of legal documents aimed at having the matter ready for trial towards the end of this year.

Bloxham, a limited partnership, was ordered to cease trading by the Central Bank last summer after it was revealed it was undercapitalised. The partners applied to have it wound up, saying they saw no prospect of an improvement in its trading position.

The High Court later confirmed the appointment of Mr Wallace of KPMG as liquidator. The firm’s largest creditors included National Irish Bank (now Danske), owed €8.5 million, and the Revenue Commissioners, owed €2.3 million.

The firm held membership of the Irish and London stock exchanges. Based in Dublin’s International Financial Services Centre, it also had offices in Cork and Limerick and more than 17,000 clients.

In December, the ISE revoked its membership. Mr Wallace claims the exchange failed to take into account relevant considerations.