Administrators to Peter Mandelson's collapsed lobbying firm Global Counsel will review transactions made by the former UK ambassador to the US to see if there is anything they can claw back for creditors.
Joint administrators Interpath said the business was forced to shut in February after "multiple blue-chip clients terminated their relationships at short notice, resulting in a significant loss of revenue" that would have resulted in "technical insolvency."
It estimated Global Counsel collapsed with net liabilities of £4.6 million ($6.2 million). The firm's 83 staff were owed £2.58 million but will get just £222,912 and potentially a share of any small residual recoveries. Administrators will pay HM Revenue & Customs £645,780 owed in tax.
The company's demise was caused by its links to Mandelson, the former peer and Labour party grandee who is now being investigated by police for allegedly sharing sensitive and potentially market-moving information with the US sex offender Jeffrey Epstein while serving as a government minister in 2009 and 2010.
A Bloomberg investigation and emails released by the US Department of Justice revealed how close Mandelson was to the convicted pedophile, who died in jail in 2019.
While Mandelson stepped back from the firm in 2024 after being made US ambassador, he had retained a stake and the association proved fatal for Global Counsel. He was removed from the job in September last year after the initial Bloomberg revelations.
"As part of our statutory obligations, we are required to formally investigate the affairs of the company and the conduct of directors prior to our appointment and submit our findings to the Secretary of State," Interpath said in its administrators' proposals. "We will also be investigating any transactions or disposals made in the lead-up to our appointment to ascertain if there are any additional recoveries for the administration estate."
Interpath said it would report its findings to the government, and added that administrator fees and expenses are expected to total £1 million.
Mandelson sold his 21% stake for about £250,000 to colleague Rebecca Park, who briefly became chief executive, shortly before the firm collapsed. It had been worth about £6 million. All other shareholders lost everything.