Former City Link parent Better Capital has revised up the amount it expects to receive from its investment in the collapsed parcel carrier.
In its report for the six months to 30 September, the business turnaround specialist said it expects to collect a £22m dividend from the sale of City Link’s assets. In June Better Capital estimated it would receive £20m, half of the £40m it invested in the parcel carrier following its purchase from former parent Rentokil Initial in 2013.
The business has so far received £19m of the money it is owed. In July administrator Ernst & Young said it did not expect Better Capital to receive the full amount it is due.
Unsecured creditors, including trade creditors, are expected to receive just 1p for every pound they are owed.
The parcel carrier’s former directors were cleared last month of failing to inform the government of impending redundancies ahead of the company going into administration last December.
