by DOUGLAS SHEPHERD
The plight of some staff members at a 'revolutionary' Borders-based agricultural business which suffered financial meltdown last year is laid out in detail by joint administrators in a progress report to dozens of creditors.
Orrdone Farms Ltd., part of the Avocet group of companies, had boasted of changing the face of agricultural production with its 'cutting edge' methodology. But it has since been revealed that the assets of the firm were sold to stable mate Omega Infinite plc for £1.9 million in May 2019. At that point Orrdone ceased trading.
Joint administrators Jeanette Brown and Emma Porter's latest report shows that apart from unsecured creditors who claim they are owed just over £1.9 million, four ex-employees have lodged claims for £33,195. Meanwhile the debt due to agricultural lenders UKAL Ltd. is quoted at well over £4 million.
The report says: "At the outset of the administration we were told by the director Martin Frost that Orrdone Farms Ltd no longer employed any staff. The Company Secretary [Eirlys Lloyd] confirmed this fact and informed us that following cessation of the company's trade in May 2019 all employees on the payroll records of the company at that time were either made redundant or transferred to the employment of other companies in the 'Avocet' group".
As we reported recently the administrators say Mr Frost and all other directors of Orrdone have been uncooperative in the investigations which have followed the insolvency of the business. Court action is in progress in a bid to enforce cooperation so that the financial affairs can be fully explored.
According to the report: "The joint administrators examined the limited payroll information which ws received from Ryecroft Glenton [Orrdone's former auditors]." Follow up queries to RG confirmed they did not have any information relating to subsequent payroll agents after May 2019; and RG were unaware which other companies in the group subsequently employed the transferred Orrdone staff.
"Unfortunately RG were not in possession of any background in the form of employment contracts, terms or rates of pay etc., and therefore it was not possible to substantiate holiday entitlements, notice periods or whether the employees were indebted to the company in any way (a matter which has been suggested on the numerous communications to which the joint administrators have been made aware".
And the report also states: "Of the employees who received their forms P45 in May 2019 we understand that some did not receive the outstanding wages and redundancy pay due to them and therefore successfully took their cases to the Employment Tribunal Serivce and received a settlement for their claims.
"We have continued to receive communications from other ex-employees as they have either not received their forms P45 or been provided with details (i.e. the name) of their subsequent employer. It is impossible for the joint administrators to substantiate any outstanding employment claims due to the lack of, or consistent information available".
A total of 157 potential unsecured creitors have been identified from 'incomplete records', say the administrators. Of these 25 have submitted proof of debt with a total value of £862,386 plus claims from Her Majesty's Revenue & Customs [HMRC] and three other public sector bodies totalling £621,476.
"It should be noted that of the 156 names identified from a reconstruction of records 29 companies appear to be part of the Avocet Group, but none have submitted claims in the administration".
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