Administrators review sale of CSDM contracts and assets

One creditor believes donor lists were sold for less than they were worth

Administrators are reviewing the sale of contracts and some assets formerly owned by fundraising agency CSDM on the grounds that they may have been sold for less than they were worth.

Adam Jordan, an insolvency practitioner at Rimes and Co, which is handling the administration process, said the firm was "looking again at the value attributed to CSDM’s assets", which was agreed by the administrator.

Jordan said the decision to review the value of the assets was made because some of CSDM’s creditors provided "new information" at a creditors' meeting last week. He declined to say how much the assets were sold for.

CSDM Fundraising Directors, a business set up by CSDM’s director Chris Stoddard, took on some of CSDM’s contracts and assets, including its lists of donor details, when the firm went into administration in June.

Duncan Trow, director of printing company PFC Group, one of CSDM’s creditors, said he had told the administrators that CSDM’s lists of donor details were the firm’s most valuable assets.

He said he had asked the administrators to research the value of the lists because he believed they had been sold for less than their worth. 

A contract between CSDM and a charity, seen by Third Sector, says: "All intellectual property rights in the mailing list will belong to CSDM during the term and to the charity after termination of this agreement.

"Upon termination of this agreement the charity grants to CSDM an irrevocable royalty-free non-exclusive right to use all intellectual property rights in the mailing list saving that CSDM may not make the mailing list available to charities whose activities are the same as that of the charity."

Jordan also said Stoddard had confirmed that none of the firms of which he is a director - which account for more than £740,000 of the £1.4m that CSDM owed to creditors when it went into administration - would attempt to recover payments from CSDM.  

Stoddard said he was unable to comment because details of the administration process had been given confidentially to creditors.

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