EXCLUSIVE by OUR BUSINESS STAFF
The three directors of an Avocet farming business who have repeatedly refused to assist or co-operate with the company's administrator face individual court actions under insolvency laws to force them to divulge information about the firm's complex financial affairs.
A new report to creditors from Emma Porter, administrator of Orrdone Farms Ltd. contains details of the legal proceedings which she hopes will be progressed in the near future following extensive court delays caused by Covid restrictions.
The directors of the £1 company, which has debts of more than £5 million, are Martin Frost, Janet Orr Frost and Robert Jennings. Ms Porter's report makes it clear that all three have continued to ignore her requests for information as part of her investigation.
Ironically, Mr Frost has told Avocet shareholders on numerous occasions that the Orrdone administration team would be the subject of legal action by company lawyers in a bid to gain vast sums of compensation.
The administrator's report, covering the period January to July 2021, says: "The non-co-operation of all of the directors of the company has continued during the period. The administrator's work has been severely curtailed throughout the administration by the directors' failure to provide any satisfactory explanation as to the state of the company's affairs as at the time of the administrator's appointment".
And she adds: "As this is in direct contravention of their statutory duties as directors, the administrators are pursuing legal channels available to them under the Insolvency Act 1986".
The report explains that the latest audited accounts for Orrdone Farms Ltd. were for 2017. Numerous allegations had been made by the directors about both the assets and the liabilities of the company, none of which had been substantiated due to a lack of evidence provided.
"On the advice of her solicitors, the administrator is seeking individual court action against the directors to enforce their co-operation under the following sections of the Insolvency Act:
"Section 234 - Getting in the company's property; Section 235 - Duty to co-operate with office holders; Section 236 - Inquiry into company's dealings".
Ms Porter confirms she continues to be made aware 'from a number of sources' of extensive correspondence issued to a wide variety of parties commenting directly on the administration procedure or the administrators personally.
She comments: "The extensive correspondence continues to be at best often inaccurate and in many instances inappropriate. Our investigations suggest the primary purpose of these communications is to deflect attention away from the matters in hand in order to delay unnecessarily the progress of the administration".
But despite the unfortunate obstruction and deflection tactics employed by the directors, Ms Porter is able to report some progress with the administration, including the sale of Harcarse Hill farm, once the headquarters of Avocet's farming operations.
The contents of the farmhouse - said by Mr Frost to be worth several millions of pounds - were valued at just £33,000, according to the report. The Omega Infinite liquidator laid claim to these assets, and the contents are being held jointly by liquidator and administrator while inquiries continue.
Mr Frost has also claimed valuable family belongings have been lost from Harcarse Hill with other items suffering damage.
The administrator writes: "Numerous attempts were made to the directors requesting that they remove their personal items. However, they declined to make arrangements for collection".
The latest creditor statement dated July 31st 2021 shows the sum of £4,043,000 remains outstanding to the secured creditors including UK Agricultural Lending Ltd. Interest will continue to run on the debt until it is settled.
Meanwhile the following sums are due to Orrdone by other 'Avocet' companies: Avocet Faculties Ltd £88,864; Avocet Infinite Renewables Ltd £77,540; Harris Endeavour Ltd £194,031. And Ms Porter points out that money due from the former parent company Omega Infinite PLC (in liquidation) amounts to £1,900,605 plus VAT. This is in respect of the sale of the whole of the trading assets from Orrdone Farms on June 1st 2019.
"The vast majority of the 158 potential creditors identified have not submitted a claim or notified their intention to submit a claim", states the report. "This includes 29 companies associated with the Avocet Group. It therefore remains the view of the administrator that these companies are not genuine creditors". Unsecured creditors' claims totalling £915,544 have been received.
A further complication is a claim against Orrdone Farms of £10,395,737 received from Omega Infinite (in liquidation) earlier in August. This will require further investigation.
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