The liquidators of Sentinel Broadcast, a company that collapsed alongside Arena Television, have initiated legal proceedings against Lloyds Bank, alleging commercial fraud, it was reported by City AM.
The case marks a new development in the aftermath of Arena Television’s high-profile collapse in November 2021, which left the broadcaster with debts amounting to £280 million.
Sentinel Broadcast, believed to have been a supplier to Arena, is the latest party to pursue claims tied to the financial fallout of Arena’s collapse. In August 2022, Arena’s administrators, Kroll Advisory, filed a £285 million claim against Sentinel’s Paul Froom and Nicholas Cousins, believed to be a former senior finance figure at Arena, alleging “dishonest assistance” in aiding Arena’s directors, Richard Yeowart and Robert Hopkinson.
The latest claim by Sentinel’s liquidators against Lloyds Bank comes after a separate civil lawsuit brought by Kroll Advisory, Arena’s liquidators, earlier this year. Kroll’s case, also targeting Lloyds Bank and the Bank of Scotland, demands £285 million in damages for payments allegedly processed “without authority” amid the broader fraud investigation.
Arena Television’s collapse prompted an inquiry from the Serious Fraud Office (SFO) in February 2022, with support from the National Crime Agency (NCA). The inquiry led to the arrests of two individuals connected to the firm, as authorities scrutinised accusations that the company fabricated thousands of assets to secure nearly £300 million in loans. Yeowart and Hopkinson, Arena’s former directors, also faced trial in France, charged with money laundering and the use of false documents.
The scandal highlighted serious issues with asset verification and equipment leasing. Arena had secured loans against thousands of items of broadcasting equipment that did not exist. This has led to increased scrutiny and more stringent verification processes within the leasing sector to prevent similar frauds in the future.
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