Avocet patent sale could pay chairman's £3 million 'debt'

 by EWAN LAMB

Some of the proceeds from a $100 million intellectual property sale might be used to settle a sizeable debt should Avocet Natural Capital chairman Martin Frost be found liable by the courts for a £3.25 million advance from a finance company.

Details of the possible arrangement are included in a witness statement Mr Frost has lodged in the County Court at Leeds where United Kingdom Agricultural Lending Ltd [UKALL] are petitioning for his bankruptcy. The businessman strongly denies that he should have to make payment and has urged the court to dismiss the petition.

When the case was called last week proceedings were adjourned until later in the year.

Now Mr Frost has provided hundreds of ANC shareholders with copies of court papers, including a document titled his third witness statement, dated March 17th and which runs to nine pages.

In it he disputes UKALL's submission that the £3.25 million mortgage (plus interest) to purchase agricultural properties in Berwickshire had been made to Avocet subsidiary Orrdone Farms Ltd with both Mr Frost and his wife as guarantors. Orrdone has been in the hands of administrators for over a year.

However, the redacted witness statement provided by Mr Frost to investors states in a section headed Payment of Debt:

"As is prior noted, should I and my wife be found liable to make payment under the guarantees to UK Agricultural, my wife and I have a number of payment sources:

"(1) From my recorded loan (as per the filed accounts) of some £6 million in Avocet IP Limited. Cash payment would derive from Avocet IP Limited selling off part of its intellectual property portfolio which was independently valued by (valuers) Coller IP in December 2019 as being worth between £50 to £400 million. Note: there is a pending transaction with XXXXXXX for the purchase of the ‘jet fuel from air’ intellectual property (as seen on TV & You Tube) for $100 million US dollars to conclude mid-April 2021.

"(2) From the underwriting given to me and Janet from the companies and shareholders of ANC Plc and Gennfros Limited [Mr Frost is a life president of this recently formed business] – such underwriting being enshrined in the companies’ articles of association. Note: (a) both companies have considerable net worth with significant wealthy shareholders and (b) Gennfros Limited, via its patented green fuel which is cheaper and cleaner than electricity has a projected value of over £200 million and should obtain a share listing in early May 2021 – talks are advanced with XXXXXXXX (xxxxxxxxxxxxxxxxxx) for xxxxxx to take up some 40% of Gennfros Limited equity via xxxxx Singapore based private equity companies.

(3) From private and family sources – full delineation can be made".

In a separate shareholder letter issued by Mr Frost in recent days he claims the Avocet and Gennfros businesses have spent almost £800,000 on lawyers, accountants and consultants over the past 15 months even though both companies have yet to generate any income from the 'revolutionary' green fuel. It has been in the research and development phase by the Group since 2014.

Avocet Natural Capital's predecessor parent company Omega Infinite - now in liquidation - also spent significant sums on law firms. Shareholders were advised by Mr Frost in February 2020 that Omega's creditors included London-based solicitors FieldFisher (£400,000) who petitioned to have Omega wound up, and Womble Bond Dickinson, said to be owed £600,000 and described as likely supporters of the petition.

As we reported earlier this month, a statement of affairs from Eric Walls, joint liquidator of AFS Ventures Ltd (Mr Frost is the sole director of that company) noted that an outstanding bill from Womble Bond Dickinson for £110,000 for specialist advice linked to the liquidation had not been paid.