Liquidators of bankrupt Arena Television launch lawsuit against British banks

The liquidators of bankrupt television station Arena Television have launched a civil action against Lloyds Bank and Bank of Scotland.

In November 2021, broadcaster Arena Television filed for bankruptcy after being left with debts of £280m amid fraud allegations.

The broadcasting company is alleged to have created thousands of fake assets to obtain loans of almost £300m. The collapse left about 50 lenders, including NatWest, Virgin Money UK and Close Brothers, without millions of dollars.

The company and those associated with it are currently being investigated by the Serious Fraud Office (SFO) after an investigation began in February 2022. The SFO is supported by the National Crime Agency (NCA), which has led to the arrest and questioning of two people.

One of the UK’s largest outsourced broadcasting companies – currently mired in scandal – had two of its former bosses, Robert Hopkinson and Richard Yeowart, charged in June last year with money laundering and using false documents.

Now the liquidators of Kroll Advisory have commenced fresh civil proceedings against Lloyds Bank and Bank of Scotland. Bank of Scotland is part of Lloyds Banking Group.

The claim was filed in the High Court Commercial Court last week by litigation firm Stewarts. According to court documents, the case is listed as a Part 7 claim for general commercial contracts and arrangements.

This is not the first civil claim brought by the liquidators, as a claim was filed in 2022 against Nicholas Cousins, who was a senior finance officer at Arena, and Paul Froom, the former owner of broadcasting equipment company Sentinel Broadcast. In 2021, the liquidators sued former bosses Hopkinson and Yeowart.

Lloyds Banking Group has been contacted for comment.