Better Capital now expects to recoup £22 million of the £40m it invested in City Link, the express parcels carrier that closed on Christmas Eve last year.
In its report for the six months to 30th September, it said: “As a secured creditor to City Link, Fund II received distributions of £10.0 million in the period and a further £4.0 million in October 2015.
“The most recent estimated total net receivable by Fund II has improved by £2.0 million at £22.0 million. To date, £19.0 million has been received.”
Better Capital was criticised by MPs for the way the closure of City Link was handled.
A joint investigation by the House of Commons Business, Innovation and Skills Committee and the Scottish Affairs Committee resulted in a report, “Impact of the closure of City Link on Employment”.
In it the MPs criticised City Link and Better Capital for encouraging small businesses and self-employed drivers to take on additional costs, despite a strong possibility that they would not receive payment for a significant part of their work in December.
“The additional work undertaken by these people has left some of them in serious financial difficulties, with some small firms forced into administration themselves or relying on goodwill from their own creditors to struggle on. Again, there is no doubt that contractors were deliberately deceived as to the true state of the business.
“City Link and Better Capital are morally, if not legally, responsible for the difficulties that many of these individuals and small business now find themselves in.”
* Three City Link directors have been acquitted of charges relating to the closure of the company. David Smith, Robert Peto and Thomas Wright faced charges at Coventry Magistrates Court of failing to notify the secretary of state for business that redundancies were inevitable before the collapse of the business. However, the court accepted their contention that they had believed that a sale of the business was possible.