OpCapita set to net £70m from Comet collapse

OpCapita is set to receive close to £70m from the collapse last year of Comet, the electricals chain.

The revelation that OpCapita managed to squeeze more money out of the administration than thought could increase pressure on the government to determine the events leading up to Comet's collapse.

Hailey Acquisitions Limited, the investment vehicle through which OpCapita structured the deal, expects to receive up to £67.9m from the administration and eventual liquidation of Comet, according to accounts published on Friday.

While the electronics retailer's demise left taxpayers footing a £50m bill, HAL, the secured creditor to Comet, stood to make a gain from the administration. Unsecured creditors to Comet, primarily landlords, were expected to lose more than £200m.

OpCapita's recovery from the administration comes on top of the £50m it received in a cash dowry from Kesa, now known as Darty, when it acquired Comet in February 2012 for just £2.

HAL's accounts show that it provided a £186.6m revolving credit facility to Comet secured by a charge over all of the retailer's assets, of which Comet drew down £115.4m. HAL also bought a £30m bank loan to Comet just days before the chain went into administration.

Comet collapsed almost a year ago, with the loss of 7,000 jobs, after it suffered a cash crunch as it tried to stock up for the peak Christmas season.

Documents published at Companies House on Friday showed that Comet has been moved from administration to creditors' voluntary liquidation.

Vince Cable, UK business secretary, last December launched an inquiry into the circumstances surrounding Comet's failure.

The last report into the administration of Comet showed that OpCapita, run by US financier Henry Jackson, was set to receive £54m from the administration.

At September 26, HAL had received £58.7m of the proceeds from the joint administration, the accounts show.

The higher than expected recovery for OpCapita could also turn the spotlight once more on Mr Jackson, who became a target of criticism after the collapse. Mr Jackson and Jim Shinehouse, a US restructuring expert, are on the board of HAL.

However, the accounts also state that the recovery from the administration would not cover HAL's losses from Comet, and it has written off £73.7m.

The accounts also reveal that HAL paid £850,000 to each of two entities that hold indirect investments in the company, including an entity in which Mr Jackson had an interest. Some £900,000 was also paid to a company in which Mr Shinehouse had an economic interest.

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