Alistair Wardell and Jason Bell of Grant Thornton UK LLP were appointed joint administrators of Loteri Cymru CIC (the 'Company') on 4 April 2018.
On 18 May 2018, the administrators sold the business and assets of the Company to Sterling Management Centre Limited ('Sterling'). Sterling operates lotteries for several large UK charities.
The Company's terms and conditions stated that the players' wallets were not held on trust and, in the event of failure of the Company, potentially all of the wallets were at risk.
Despite this, Sterling has undertaken to enter all players with outstanding balances into the relaunch of the lottery or to provide a refund if requested by the player.
In order to make this possible, the secured creditor of the Company agreed to transfer the majority of its potential recovery under its floating charge.