Avocet boss's Texas talk "utter garbage"

by DOUGLAS SHEPHERD

Rumours in the press that Avocet Group chairman Martin Frost could be made bankrupt next week "for technical reasons" rather than due to inability to pay a £4 million debt have been seized on by the self-styled controversial businessman.

But Mr Frost's latest newsletter to Avocet Natural Capital (ANC) shareholders was dismissed as 'utter garbage' and 'piffle' after he told investors that payment of promised dividends from the sale of patents would be made by an unnamed Texas entity.

As reported in these columns a judgment in the bankruptcy petition case brought against Mr and Mrs Frost by finance company United Kingdom Agricultural Lending Ltd. (UKALL) is to be handed down in court at Leeds on October 18th.

In a reference to the legal proceedings, Mr Frost writes: "On Thursday 7th October, a rumour was peddled by some members of the press that despite the ability to pay I may (for technical reasons) be made bankrupt next week. These rumours echoed again today. Provisions are made for such an eventuality - since 2012 I have made gifts of over £29 million pounds – I regret some £11 million are Avocet related of which over £5 million recent could be subject to a trustee claim. I have provided for such a possible hiccup; I trust any gift recipient has done similar."

Earlier Mr Frost had urged recipients of the £5 million worth of shares gifted by him to now pay him one penny per share to avoid having their "gifts" seized by UKALL.

There has been widespread scepticism among Avocet investors after the Group's management claimed intellectual property worth $40 million had been sold to 'mystery' Middle East buyers with the cash being deposited in the USA for safe keeping.

Yesterday's newsletter outlined what would happen next.

According to Mr Frost, on Saturday 23rd October 2021, Eirlys Lloyd [company secretary of a number of Avocet firms] will start work on the list of ANC Plc shareholders who will benefit via a dividend from the recent intellectual property sales. Mrs. Lloyd expects to conclude her input by Monday 1st November 2021.

"The Texan company from which the dividend will emanate, is subject to the commercial laws of Texas which provides that a dividend may be withheld from an entity in which the Texan company or its parent may be in dispute with.", he added.

"On Tuesday, 2nd November I shall provide Mrs Lloyd with such in dispute entities. Thereafter, the dividend will be issued in gross form to the shareholder. Payment in US currency will be made from Texas. This dividend payment shall be bounced off (or then routed out) of a European country. Payment will remain in US dollars. It will be up to the individual shareholder to notify their tax authority as to their dividend receipt.

"As of 4pm Texan time on 13th October, there has not been a formal written notification re: the non-applicability of the US withholding tax. That said, one is assured that receipt will now not be later than 10am on Friday 15th October Texan time, and it is that time & date that ANC Plc’s executive shall work to."

However, these disclosures from Mr Frost failed to impress an unnamed contributor to the online Avocet Shareholders' Independent Forum.

He or she wrote: "The latest newsletter from Frost is utter garbage. Apart from pushing the date back he is telling us that some unknown Texan company will pay the dividend and that some obscure law says that if that company is in dispute (not avocet) with an entity the dividend can be withheld. What nonsense. I have never heard of a third party company paying a dividend for another company especially when the money is meant to be in the bank.

"I think I may be joining the bad people as after all the damage he has done I would quite happily see him and his cronies ruined".

And a second Forum post went into greater detail.

This writer claimed: "Frost, please allow me to give you a refresher course in very basic business law.
We are not shareholders in a “mystery” company in Texas. We are shareholders of Avocet Natural Capital Plc, a company incorporated in the UK, and as such, both the company as well as our relationship with it, are governed by UK, not Texas, law.

"Regardless of where the money to pay this (so far very imaginary dividend) comes from, from a legal perspective ultimately the shareholders must be paid the dividend directly from the company whose shares they hold – in this case, Avocet Natural Capital, a UK company governed by UK, not Texas, laws.

"If it is not, then under the law (UK or Texas, or any other jurisdiction that I can think of), any such payment would not be considered to be a dividend, with the resulting tax and other implications. So, in summary, Frost, in any future statements, please try and conform to well-understood basic business and legal principles. Never your strong point, was it?"

In his newsletter Mr Frost also revealed that solicitors Fieldfisher, of London, had recently completed a debt purchase and debt assignment form. Companies or individuals wishing their debt against Omega [Omega Infinite was the former Avocet Group parent company now in compulsory liquidation], or any other Avocet company purchased should first approach Dr. ‘Bob’ Jennings (Mr Frost's fellow Avocet director) for a form. Agreed payments should be paid in October 2021."