No confirmation of $40 million Israeli patent sale

by OUR OWN REPORTER

A number of Israeli Government departments and the country's UK Embassy have told Not Just Sheep & Rugby they have no knowledge of a $40 million intellectual property deal involving their state officials and "disruptive technology" company Avocet Natural Capital.

The identity of the mystery Middle East purchasers of 'revolutionary' fuel additive patents appeared to have been confirmed during a court hearing in October when a finance company successfully applied to have Avocet chairman Martin Frost declared bankrupt.

Our exclusive report on the bankruptcy proceedings included an explosive submission by Jonathan Rodger, counsel for United Kingdom Agricultural Lending Ltd. (UKALL), the firm pursuing Mr Frost and his wife for a £4 million debt.

Mr Frost had claimed he would be in a position to pay off his debts and creditors as he was due to receive some $6 million from the patents sale. The proceeds were, at that time, being held in a Texas bank, he said.

But in a forthright court statement Mr Rodger declared: "There are no transaction documents, by which I mean documents effecting the sale of $40 million of intellectual property to the state of Israel. The idea that such a transaction would not have generated a forest of documents is absurd. 

"There is no evidence that any money transfer from the Frost Bank [of Texas] to Mr Frost is in progress. There are no minutes of the board of ANC (Avocet Natural Capital) or of a shareholders meeting of ANC approving the disposition of such an enormous amount of ANC’s money to Mr Frost. Obviously for a company to just give $6.1M of its money to a director is an eyebrow raising thing which ought properly to be done with attending formality. 

"And finally, there’s no copy of the written confirmation of this favourable decision from the Texan taxation authority – all of this could have been produced to you. I’m afraid that it’s my submission that Mr Frost’s letter of 11th October and his assertion that essentially 21st century alchemy is going to put $6.1M in his pocket is fanciful and utterly without substance."

In response, Mr Frost claimed there had been an embargo in place that there should have been no mention of the state of Israel. 

He added that counsel for UKALL had broken that embargo in a public forum. Mr Frost explained that Israeli security services had been involved in the transaction. ANC had a number of prominent Islamic shareholders, and "one did not want a big announcement that this technology was being sold to the Israelis".

Since the court proceedings ended six weeks ago we have attempted to secure comment from the Government of Israel about their dealings with Avocet Natural Capital. Our efforts have involved fourteen separate email exchanges.

We asked how the technology sold to the Israeli state by ANC would be used, and requested confirmation of the $40 million price frequently quoted by Mr Frost in newsletters to shareholders.

Our quest began with a message directed at Israel's general press office where a member of staff provided a ten-page list of spokesmen and spokeswomen for the various state departments. We were in for a long haul.

An approach to the Israeli embassy in London elicited the response "I can try to find out but the chances are slim". A fortnight later we were told there was no further information available.

We then tried Israel's Ministry of Energy, copying our request for information to the Science & Technology department.

An Energy spokesperson wrote back to say: "This is not related to our area of practice. I'm not familiar with this story at all. I have no relevant information of who is the appropriate person who can help".

Since then we have despatched three emails in the course of the last fortnight to the "Western European media spokesperson" but we are still awaiting a response.

Despite our best efforts, for now the multi-million dollar transaction between ANC and the state of Israel remains as mysterious and as secret as ever.

Fund's collapse referred to Manx High Court

by EWAN LAMB

The offshore investment firm that failed to bankroll the development of a £23 million waste treatment plant for Scottish Borders Council is now the subject of a liquidator's report to the Isle of Man's High Court of Justice detailing factors in the run up to the company's collapse which warrant further investigation.

A team of insolvency experts which is being funded by the island's Financial Services Authority has now spent more than five years probing the affairs of the New Earth Recycling & Renewables [Infrastructure] fund - known as NERR - following its spectacular demise in 2016. 

A year earlier the Borders council and NERR's partners the New Earth Solutions Group (NESG) were forced to abandon their 24-year waste management contract, worth up to £80 million when it was signed in 2011. The Galashiels treatment facility was never even started although the local authority spent more than £2 million on consultants and expensive law firms.

Since the Borders deal was scrapped it has emerged that NESG, which has also been dissolved, owed NERR £39 million while NERR itself had debts and liabilities of £113 million. Questions have been asked about a possible lack of so-called due diligence by SBC before it formed the NESG partnership.

The 3,250 investors in the Manx-based fund had placed a total of £220 million with the managers of NERR, the also liquidated Premier Group (Isle of Man). The NERR liquidators have been scrutinising some 200,000 documents linked to the financial mess.

In a report to creditors issued this week joint liquidators Alex Adam and David Craine reveal: "On 23 August 2021, the deemed official receivers submitted their report to the Isle of Man High Court of Justice, pursuant to Section 176 of the Isle of Man Companies Act 1931, detailing the results of their investigations into the factors leading to the Company’s collapse into insolvency and presenting those matters which require further investigation to be conducted by the relevant authorities. We have sought legal advice as to whether it would be possible to share the contents of the report with creditors and investors however we are advised that, as it is a report to the court, it is confidential and cannot be shared."

And the report also says: "The Joint Liquidators, in concert with our legal advisors, have continued to progress our investigations into the roles of other advisers to the Company. In respect of those investigations, since our last update we have obtained further input from our legal advisers, setting out further steps required to allow for a formal counsel’s opinion to be obtained on the viability of a potential claim which, if successful, has the prospect of resulting in a return to investors. 

"We are currently undertaking that additional work. We are unable to provide further details at the present time due to the risk of prejudicing any possible future action, however we will provide further information as and when we are able to. Funding There is no change to the funding arrangement with the Isle of Man Financial Services Authority (“FSA”). As you are aware, the funding of the liquidation remains subject to ongoing review by the FSA and can be withdrawn at any time."

Section 176 of the 1931 Act says a liquidator/receiver can present a report to the Court "if the company has failed, as to the causes of the failure; and whether in his opinion further inquiry is desirable as to any matter relating to the promotion, formation, or failure of the company, or the conduct of the business thereof.

"The official receiver may also, if he thinks fit, make a further report, or further reports, stating the manner in which the company was formed and whether in his opinion any fraud has been committed by any person in its promotion or formation, or by any director or other officer of the company in relation to the company since the formation thereof, and any other matters which in his opinion it is desirable to bring to the notice of the court."

Section 207 of the same Act  explains that when an official receiver has made a further report under this Act stating that in his opinion a fraud has been committed by any person in the promotion or formation of the company, or by any director or other officer of the company in relation to the company since its formation, the court may, after consideration of the report, direct that that person, director or officer shall attend court and be publicly examined as to the promotion or formation or the conduct of the business of the company, or as to his conduct and dealings as director or officer.

Jedburgh Abbey's horseshoe nail mystery

BY OUR OWN REPORTER

When workmen carrying out a heritage restoration project in the shadow of Jedburgh Abbey disturbed human remains in August 2020 the event made national headlines with the bones thought to be at least 200 years old.

But now an even more intriguing story is emerging from an investigation by archaeologists into the 2020 find. And the inquiries conducted by HARP Archaeology's Ian Hill on behalf of Scottish Borders Council (SBC) and Jedburgh Conservation Area Regeneration Scheme will be discussed at an archaeological conference this weekend.

It has been established that one of the skeletons, a male believed to be aged between 25-35 at death was clutching fragments of corroded metal in his left hand. He was lying alongside a female who was aged between 22 and 30 when she died. The remains were uncovered from beneath the abbey ramparts where thousands of tourists walk during visits to the world renowned monument.

The experts have also discovered that when the ramparts were originally constructed at some point before 1775 large quantities of skeletal remains were disturbed before being discarded with little or no regard for the dead.

Mr Hill told Not Just Sheep & Rugby: "I think it is fair to say that they weren’t treated with a huge amount of respect; we found evidence of at least 22 individuals that had been discarded into the ground raising event during rampart construction, and five disturbed graves, but there were likely several more disturbed during the construction of the rampart"

He also explained that the metal fragments being gripped by the young male turned out to be an unused horseshoe nail being held as some kind of charm. Said Mr Hill: "There are some folk beliefs that horse shoes and their nails held amuletic powers. 

"In terms of significant findings, the two individuals buried together is interesting as there does not appear to be many parallels in the UK although we have not exhaustively researched that yet."

A detailed report on the archaeological work carried by HARP says changes to the ramparts can be viewed in historic maps from the 1700s to 1900s, along with images and prints from the late 18th to early 19th Century. Eighteenth Century maps, including an untitled map from 1775 and Ainslie’s map of 1780 refers to the ground located to the west of a wall on a similar line to the rampart wall as being the ‘High Kirk Yard’. 

The 1775 map also indicates the land adjacent to the east of the wall being the ‘Low Kirk Yard’, however Ainslie’s map notes this area as a ‘Cattle Market’. Both maps indicate a wall to the east of the abbey, which may represent the rampart wall.

The recent repair works at the Jedburgh Abbey Ramparts - part of a £1 million heritage project - were carried out to consolidate, update, repair, and replace different sections of the walls. The works included the careful removal of significant portions of the face of the existing rampart wall in order to re-build the backing wall where required, with the masonry face re-built and repointed in lime mortar to match the existing style and appearance of the rampart wall; replacing three sets of steps leading from street level to the top of the ramparts.

And the report adds: "The articulated remains of the two intact human burials were revealed at a depth of approximately 1.95 m from ground level at the top of the ramparts. On the discovery of the intact skeletal remains, excavation works for the new stairs, and repair works for the wall were ceased."

A total of 496 human bone elements were recorded by the HARP team. "On a strictly context base, this would seem to indicate 28 individuals; however, given the highly fragmentary and commingled nature of some of the remains, it seems that this would over-represent the number of individuals."

In addition: "A total of 378 animal bone elements were recorded. There is a minimum of nineteen sheep/goats three cows, one dog, one cat; one bird; one rodent; and one pig, though these numbers are almost certainly under-estimated."

According to Mr Hill's report: "Whilst it is clear that all human skeletal material uncovered was disturbed during the construction of the ramparts in some way, and therefore predate the construction of the ramparts in the late 18th to early 19th Centuries, radiocarbon dating of the skeletal material retrieved from the intact human burials would help to provide a more accurate date of death of the individuals, and will help to identify at what time period the previous landscape was in use as a graveyard."

Analysis of the DNA of both the intact individuals would help to determine whether there was any familial ink between the two.

The report continues: "Whilst preliminary analyses of the (animal) bones has been undertaken, a more detailed analysis of the animal remains to further identify species and evidence of butchery marks would help to outline what types of animals were being consumed, potentially relating to abbey life. 

"Consideration will also need to be taken on the re-deposition of the retrieved human skeletal material, however the final decision for this process will lie with Historic Environment Scotland and SBC."

Mr Hill will give a presentation featuring the Jedburgh ramparts 'dig' during tomorrow's (Saturday November 20th) online Edinburgh, Lothians and Borders 2021 Archaeology Conference

Avocet firm with £940,000 debts had £15 in bank!

EXCLUSIVE by OUR BUSINESS STAFF

An investigation into the latest financial disaster involving the Avocet Group of 'disruptive technology' businesses has revealed a deficit of £940,000 with just £15 in cash lying in the company's bank account.

The first report from joint administrators appointed to Avocet Faculties Ltd in September shows hundreds of thousands of pounds are owed to associated insolvent companies Avocet Infinite (now called Omega Infinite) and Avocet Farms (Orrdone Farms) with HMRC also listed as a creditor.

Prior to its collapse into insolvency it was disclosed that Avocet Faculties had paid £200,000 for a dilapidated jetty and a narrow strip of land on the shores of Loch Lomond. The same piece of real estate changed hands for just £1,000 five years earlier.

Now administrators Kris Wigfield and Jason Ainge, from insolvency experts Begbies Traynor have instructed agents to sell the redundant pier at Port A Chaipuill and to market the company's only other asset, a pair of farm cottages in Berwickshire.

The sole director of Avocet Faculties is Dr Bob Jennings who replaced the now bankrupt businessman Martin Frost in September 2020. Company secretary is Eirlys Lloyd who fills that role for a number of Avocet businesses. The solitary £1 share in Avocet Faculties is held by another Avocet outfit, Avocet Bio Solutions Ltd., registered in the Irish Republic.

In his report, Mr Wigfield explains that the administrators had been appointed by Omega Infinite as holder of a qualifying floating charge, acting by its liquidators Ashleigh Fletcher and Joanna Hammond, also from Begbies Traynor.

According to the report: "The director has not yet provided the joint administrators with details of the company's history. The director has not yet prepared a statement of affairs of the company as of September 2021 nor provided sufficient information to prepare an accurate one".

Omega Infinite as principal creditor is associated with Avocet Faculties by common directors and shareholders, the report says. Omega was granted several charges against the company's property and undertaking, including security charges over the property and Loch Lomond jetty.

"Cash in the sum of £15 was identified in the books and records located at the company's registered office. This amount has been paid into the administration bank account".

Mr Wigfield estimates Omega Infinite was owed £807,563 at the time of his appointment. HMRC has a claim for £21,860 relating to outstanding PAYE while Orrdone Farms Ltd is due £88,864 - unsecured creditors have claims totalling £111,745. Among those due money is a former employee owed £11,443.

Both Omega Infinite and Orrdone Farms have lengthy lists of creditors owed between them a sum running into many millions of pounds..

The Avocet Faculties report states: "At this stage, in order that potential realisations are not prejudiced, we do not ascribe a realisable value to the properties, although a shortfall to Omega's indebtedness is anticipated".

However, the administrators add that they have been provided with certain information which requires consideration in relation to the validity of Omega's charges, prior to any distribution being made.

But if the Omega security is valid there will be no dividend for other creditors.

"On present information the joint administrators believe the most appropriate exit route from administration is for the company to move into liquidation. There may be matters for enquiry concerning a company's affairs which are not within the scope of an administrator's powers and which can only be properly dealt with by a liquidator".

Pre-administration costs are shown as £18,862, and these are currently unpaid.

Officers to be replaced, promises Frost

by EWAN LAMB

The latest claims by bankrupt businessman Martin Frost that administrators and liquidators of two of his insolvent and debt-ridden companies are to be replaced have left long-suffering shareholders astounded and confused.

In a newsletter sent by email today to Avocet Natural Capital PLC investors Mr Frost also promised that the 'denizens' who are members of the Avocet independent internet Forum would face prosecution with an announcement to that effect to be made this weekend.

There has been growing speculation over the Avocet Group's future following last month's decision by a judge to issue bankruptcy orders in respect of Mr Frost and his wife. But so far there has been no public statement from either Avocet director Bob Jennings or company secretary Eirlys Lloyd.

As a bankrupt Mr Frost is not able to hold directorships in any company although more than three weeks out from the court decision he is still listed as a director of a number of businesses including Avocet Natural Capital.

He now contacts shareholders under the title of joint president of ANC although critics claim he should not be using company data to get in touch with investors.

In today's missive, Mr Frost updates readers on the forthcoming dividend payment plans before informing shareholders: "This coming weekend there will be significant announcements regarding: Omega Infinite Plc – replacement of liquidators; Orrdone Farms Limited – replacement of Ms. E. Porter;  Avocet ‘HATE’ Forum – prosecution of denizens; Genfro Limited – trading platform operations"

Insolvency specialists Begbies Traylor were appointed as liquidators of Omega Infinite in 2020 while Emma Porter is the administrator of another Avocet subsidiary, Orrdone Farms Ltd. Both of those concerns have sizeable debts and separate lists of creditors.

Not Just Sheep & Rugby contacted Edinburgh-based accountancy firm Aver where Ms Porter is based to see if they could comment on Mr Frost's assertion that she was to be replaced.

We were told: "Ms Porter does not consider it appropriate to comment on unsubstantiated statements by Mr Frost."

When we got in touch with Begbies Traynor's spokespersons to see if they could throw any light on the upcoming departure of Omega Infinite's liquidators we were informed: "Begbies Traynor are not able to comment".

But one of the shareholders who is concerned by the insolvency of three Avocet businesses - Avocet Faculties Ltd is also in administration - had strong words to say after reading today's newsletter.

The investor commented: "I do not understand why Frost can freely correspond with shareholders subsequent to his bankruptcy ruling. Surely someone in authority can put a stop to this flagrant breach of legal process?

"It would be interesting if Frost could tell us on whose authority the officers currently investigating the affairs of the failed businesses are to be removed. We already know he and his fellow directors have refused to co-operate with Ms Porter which also constitutes a breach of company law".

Bankruptcies "likely to be annulled"

by EWAN LAMB

Bankrupt businessman Martin Frost has circulated another "newsletter" to shareholders of Avocet Natural Capital PLC even though his new status means he is unable to serve as a company director until he is discharged.

Writing in his capacity as 'joint president' of the self-styled disruptive technology Avocet firm Mr Frost tells his readers: "Janet and I heard today that our bankruptcies are likely to be annulled."

On October 18th Judge Joanna Geddes issued bankruptcy orders on the couple after the Business and Property Court at Leeds was petitioned by counsel for United Kingdom Agricultural Lending Ltd (UKALL). The finance company is seeking repayment of a £4 million sum it advanced in 2016 for the purchase of farms in Berwickshire.

Mr Frost had denied any money was due by him to UKALL, and told the court both he and Janet would be appealing the bankruptcy orders in a higher court.

He had sought an adjournment of the October hearing to allow some £6 million to be paid into his  account from a Texan bank said to be holding $20 million - the first tranche of the proceedings from a $40 million deal in which Avocet Natural Capital had sold fuel patents to the State of Israel.

After reading Mr Frost's latest correspondence, an ANC investor who shared the letter with Not Just Sheep & Rugby declared: "This is absolutely astonishing. Frost continues to use the company's email list to contact us despite being effectively banned from running any company. 

"This looks like 'business as usual' for Frost so where are the other directors? We have received no information from the remaining board about the future or fate of the Avocet Group or its so-called wonder fuel".

Mr Frost's letter, like many of his previous emails to Avocet's 675 shareholders, carries a warning about the transmission of the information to others.

It states: "Please Note: Avocet Natural Capital Plc shareholders correspondence is identified with a tracker so please do not breach your shareholder NDA by passing on the contents of this shareholders communique to third parties without first obtaining permission from Mrs. Eirlys Lloyd [company secretary]."

The correspondence is headed 'Dividend News' and goes on to say: "I am advised that over 60% of ANC Plc shareholders have intimated their IBAN numbers to Mrs. Eirlys Lloyd. To execute the ANC Plc dividend, one needs an 80% consent to be gained either by implication via the receipt of your IBAN or in writing direct to Dr. Bob Jennings (the other ANC joint president).

"If 80% is NOT achieved by 4pm Thursday 11th November, then I am told that ANC Plc will apply for a court order to make this dividend. Providing the court grants the dividend then those of you who have not personally opted will have your dividend paid into an escrow account where it will be held until the next ANC Plc dividend award. A similar procedure may then apply."

On other news, Mr Frost claims: "The Genfro (another company dubbed 'son of Avocet') trading platform is delayed due to a dispute between Google and Microsoft in which Microsoft has backlisted emails from its providers to Genfro. This restraint of trade is being sorted."

And: "As matters settle you shall shortly be in receipt of further good news on the Genfro and Bio Solutions fronts."