Over 2,000 Creditors File Claims Against Bankrupt Pearl Linguistics
Over 2,000 creditors of Pearl Linguistics, the London-based Language Service Provider (LSP) that declared bankruptcy on March 3, 2017, have filed claims with the company’s liquidator, accounting giant PwC.
A regulatory filing dated April 6, 2017 includes a 25-page list of individuals and companies that need to be paid from the proceeds of the liquidation of Pearl’s assets. The list consists mostly of freelance linguists whose services had not been paid at the time of the bankruptcy filing.
However, a number of LSPs are also affected. Some of Pearl’s biggest creditors include US-based Language Services Associates (GBP 136,807 or USD 171,889), Clarion (GBP 53,598), Premium Linguistic Services (GBP 39,663), and a few others.
The relatively low number of corporate creditors from the language industry shows Pearl operated a model that relied mostly on directly engaging linguists. The total amount owed to such “trade creditors” — LSPs and freelance linguists — is GBP 858,644.
Pearl also seems to have mortgaged its receivables in exchange for short-term financing given that HSBC’s Invoice Financing unit is its single largest creditor with claims north of GBP 1m.
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