The financially-troubled stockbroking group MMI has until today to put together a rescue package acceptable to the Central Bank or else face the prospect of liquidation with debts of up to £2 million.
The Central Bank gave MMI a further two-week period of grace to get its finances in order either by finding an investor to rescue the company or else by reclaiming the estimated £2 million debts due from clients who took advantage of the controversial T20 rollovers to fund their investment in exploration group Dana Resources.
Since that two-week extension was granted on September 23rd, MMI managing director Mr Tim Murphy has been involved in intensive negotiations with a British investor, but it remains to be seen whether his efforts have been successful. Mr Murphy was not available for comment yesterday.
Over the past few days there have been conflicting rumours in the market about the likelihood of a rescue, with one rumour that a deal had been done bar completing the legal details being quickly followed by another rumour that the rescue with the British investor had collapsed.
The prospect of a High Court examiner being appointed rather than a liquidator is seen as remote.
If a liquidator is appointed, he will have few assets to realise apart from the estimated £2 million due to MMI from its clients. It will be a major job to reclaim all these outstanding debts, but a liquidator will be bound to pursue all MMI's creditors as long as he believes that the cost of reclaiming the debt is justified by the actual size of the debt.
MMI itself has already begun the legal process aimed at reclaiming the debts.
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