Better Capital expects to recoup £22m from City Link
Better Capital has indicated that it expects to recoup around £22m from the failed courier c0mpany City Link. The private equity company, which reportedly invested about £40m in City Link, has so far recovered around £19m.
Better Capital is classified as a senior creditor, after making a secured debt investment in the company.
By contrast, the many self-employed van drivers who worked for City Link are classified as unsecured non-preferential creditors and are therefore likely to fare less well in their quest for redundancy payments, sources report.
The City Link collapse has, however, contributed to a fall of more than 20% in the value of Better Capital’s investment fund.
