The UK Business Secretary Alok Sharma appointed the insolvency team which is now investigating the affairs of Borders-based 'green innovators' Avocet Infinite as shareholders wait to see whether they may have lost an estimated £14 million in investments.
A statement issued on behalf of the joint liquidators revealed which UK Secretary of State had applied to the courts to have liquidators assigned to the company which changed its name to Omega Infinite last year.
Meanwhile two other Government agencies are listed as creditors of Orrdone Farms Ltd., a subsidiary of the Avocet 'Group' fronted by principal director Martin Frost.
The joint administrators who took over that business in January have reported a deficit for Ordonne Farms of £3.8 million although they say it has proved difficult to get the information they need as book-keeping had not been kept up to date. The last published accounts for both firms were for 2017.
The list of creditors for the farming company include HM Revenue & Customs Debt Management Enforcement section with a claim for £165,662.
And Forestry & Land Scotland, an arm of the Scottish Government, has submitted a creditor's claim for £201,050.
Other creditors of Orrdone Farms include Peony Farms, of Lacombe, Canada, a leading producer of Piemontese cattle, said to be owed £44,477, and ABGI-UK Ltd., formerly known as Jumpstart, a specialist firm in the field of research and development tax credit claims (£10,763)
The Newcastle accountancy firm of Ryecroft Glenton, which audited the books of Orrdone Farms, Avocet Infinite and of Avocet Faculties Ltd are due £25,218. And Berwick-based surveyors Edwin Thompson are listed as creditors owed £24,079.
In the case of the Orrdone Farms parent, Sheffield insolvency practice Begbies Traynor said in a statement: "Ashleigh Fletcher and Joanne Hammond of Begbies Traynor were appointed as joint liquidators of Omega Infinite plc on 28 April 2020.
"This is a complex matter and the joint liquidators’
investigations are at an early stage. If you or any creditors are able provide
further information in relation to this matter, please contact Begbies Traynor
on (0114) 275 5033."
The statement added: "We can confirm that the joint liquidators were appointed by
the Secretary of State for Business, Energy and Industrial Strategy (Alok
Sharma)".
The liquidation and administration processes are likely to be additionally complex as a result of inter-company transactions involving Orrdone Farms and Avocet Infinite in the months prior to their financial collapse.
Orrdone's insolvency team, in a report published on the Companies House website described the apparently tangled set-up.
They wrote: "In our discussions both with Mr Frost and the company
secretary, we were informed that Orrdone Farms Limited had ceased to trade at
the end of May 2019 and that it no longer owned any trading assets (including
livestock), or had any employees.
"Invoices later provided to us showed that all
of the Company's trading assets and livestock were sold to Avocet Infinite plc
(now Omega Infinite plc) on 1 June 2019. We were informed that at the time of
the cessation of trade, three of the Company's former employees were dismissed with
the remainder being moved to other "Avocet" companies under
"TUPE" rules. We have not been granted full access to the Company's
detailed payroll records."
Administrators have been provided with two invoices dated 1 June 2019 in
the name of Avocet Agriculture Limited (now Orrdone Farms Limited) relating to
the sale of all trading assets including farm equipment and livestock to connected company, Avocet (now Omega) Infinite plc. The total sums due to the
Company as a result of these two invoices is £1,900,605 plus VAT.
However, Orrdone joint administrators Jeanette Brown and Emma Porter add: "We have not been provided with any evidence that these
invoices have been paid, nor has the Company accounted to HM Revenue Customs
for the output tax due"..
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