by OUR BUSINESS REPORTER
The revelation that more than $6 million from the sale of intellectual property will be used to provide evidence that Avocet Group directors have the ability to pay their creditors has apparently shocked some shareholders who have been waiting seven years for a return on their money.News of the financial manoeuvre was given at the weekend by Avocet Natural Capital PLC [ANC] chairman Martin Frost just a day before the October 11th deadline set by a judge in Mr Frost's bankruptcy petition hearing.
The self-styled 'controversial' businessman was given until today to provide the Leeds Business and Property Court with proof he could settle a £4 million debt with petitioners United Kingdom Agricultural Lending Ltd. (UKALL). A judgment in the case is scheduled for handing down on October 18th.
In a newsletter to ANC shareholders Mr Frost explained: "Please note from Summer 2020 most of my UK assets have been frozen by UK Agricultural Lending Limited. I am now aware that UKALL will seek to freeze my UK debtors and UK potential debtors.
"Within potential debtors is a £5.5 million sum of personal gifts I have made in the last three years. Within this £5.5 million are my gifts of ANC Plc shares – unless these shares are bought either for cash or by arrangement any dividend on these shares may be apprehended by UKALL. To prevent this happening please ensure such gifted shares are purchased before Wednesday 13th October 2021."
But angry shareholders immediately took to the Independent Forum to warn against such a move. This followed frequent claims that the shares in Avocet were now worthless.
A Forum contributor wrote: "Frost is now claiming in his October 10th, 2021 letter that his gift of shares to us has made us each a ”potential debtor” of his, and we must immediately pay him personally for the shares that he gave as a gift to us to prevent this.
"This makes absolutely no sense. Frost just needs money. Don’t give it to him. Or, ask him this - 'if you want any more money from us, just show us proof that ANC has in its possession half of the funds from the $40 million sale. It is very easy for you to do.'"
ANC management say unidentified investors from the Middle East have purchased $40 million worth of intellectual property from Avocet and associated company Genfro in recent times. The money is said to be deposited in a US bank account.
In his Sunday correspondence Mr Frost wrote: "On Friday, ANC Plc verbally heard that its funds in the US (neither $20 million held nor the $20 million in escrow - $40 million in all) will NOT be subject to US withholding tax. This verbal approval will be confirmed on Wednesday 13th October 2021. This means that ANC Plc will on Thursday 14th October 10, 2021, be making some payments".
These payments would include £6.6 million under ANC Plc’s guarantee liabilities to Martin Frost; Dr. Bob. Jennings; Mrs. Janet Orr Frost; and Mrs. Rose Mary Jennings to be put into an escrow account to evidence ability to pay.
The cash would also be used to purchase "some Omega related debts from Fieldfisher, Basck, Ryecrofts, and Collir IP. The advance of a small working capital fund to support the restructured Avocet Bio Solutions (e.g., payments to methanol & fodder plant developments). Payment of all outstanding ANC Plc trade creditors including those with Mr. Paul Newsham & payment into a ‘bash-up ‘litigation fund."
Fieldfisher is a law firm frequently mentioned in correspondence from Mr Frost. He told investors recently that the firm's Kit Jarvis would be used to pursue litigation against a large number of parties who had 'damaged' Avocet.
Basck are patent specialists while Ryecroft Glenton are a Newcastle-on-Tyne based firm of accountants who resigned as auditors of Mr Frost's businesses for non payment of professional fees. "Collir IP" - it should be Coller IP - provided valuations of Avocet's intellectual property in 2016 and 2018.
In a separate email circulated by Mr Frost last Friday shareholders were informed: "The Genfro Share Trading Platform based in Panama, remains unregulated. That said, unregulated share dealing in Genfro Limited shares along with the reconstituted (Eire-based) Avocet Bio Solutions shares shall commence next week. All Genfro Limited & Avocet Bio Solutions shareholders shall be notified as to the opening and transaction methodology. As a guide – Bio Solutions shares are expected to exchange around one euro and Genfro for more than one pound."
These payments would include £6.6 million under ANC Plc’s guarantee liabilities to Martin Frost; Dr. Bob. Jennings; Mrs. Janet Orr Frost; and Mrs. Rose Mary Jennings to be put into an escrow account to evidence ability to pay.
The cash would also be used to purchase "some Omega related debts from Fieldfisher, Basck, Ryecrofts, and Collir IP. The advance of a small working capital fund to support the restructured Avocet Bio Solutions (e.g., payments to methanol & fodder plant developments). Payment of all outstanding ANC Plc trade creditors including those with Mr. Paul Newsham & payment into a ‘bash-up ‘litigation fund."
Fieldfisher is a law firm frequently mentioned in correspondence from Mr Frost. He told investors recently that the firm's Kit Jarvis would be used to pursue litigation against a large number of parties who had 'damaged' Avocet.
Basck are patent specialists while Ryecroft Glenton are a Newcastle-on-Tyne based firm of accountants who resigned as auditors of Mr Frost's businesses for non payment of professional fees. "Collir IP" - it should be Coller IP - provided valuations of Avocet's intellectual property in 2016 and 2018.
In a separate email circulated by Mr Frost last Friday shareholders were informed: "The Genfro Share Trading Platform based in Panama, remains unregulated. That said, unregulated share dealing in Genfro Limited shares along with the reconstituted (Eire-based) Avocet Bio Solutions shares shall commence next week. All Genfro Limited & Avocet Bio Solutions shareholders shall be notified as to the opening and transaction methodology. As a guide – Bio Solutions shares are expected to exchange around one euro and Genfro for more than one pound."
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