The administrators for BetIndex, operator of Football Index, have confirmed that additional plans are in place to return funds to customers besides this week’s court hearing.
tradingA redress scheme through a Creditors’ Voluntary Arrangement (CVA) has been designed and will “also look to return further funds to customers,” the operator said. It added that administrators were confident the proposal for this arrangement will be shared with creditors in the next few weeks.
However, the operator did not provide any information on how much money might be provided to customers via this scheme.
A hearing to determine how the £4.5m in the company’s player protection account will be distributed is already set for 21 May.
Originally set to be heard before the Insolvency List, the hearing was raised to the High Court earlier this month, after Football Index operator BetIndex announced first steps had been taken to pay back customers.
The operator owes £3.2m for money held in customer accounts on the site. While its terms and conditions said that money spent on players through bets on the platform were “sums at risk” and therefore not protected, administrators said dividends – a form of winnings – may be owed up to a certain date, which will be determined through the hearing.
However, the CVA announcement suggests that a certain amount of money spent on bets or further dividends may be able to be returned.
The business also announced it was cancelling all current unmatched bids by 18 May as it prepares for the paying out of cash balances. Administrators have said this will cause “fluctuations in portfolio benchmarks and prices displayed relating to certain footballers”.
The Football Index mobile app will also be disabled from midnight on 20 May to facilitate the repayment process. As a result, players who wish to log into their account must do so on the Football Index website.
BetIndex first entered administration in March when the Gambling Commission suspended its operating license.
The Gambling Commission initially defended its decision not to revoke BetIndex’s license earlier, however the government has since announced an inquiry into the platform’s collapse, where it will also examine the regulator’s role.
The company was also forced to cut short shirt sponsorships with football teams Queens Park Rangers and Nottingham Forest.