EXCLUSIVE by OUR BUSINESS STAFF
The administrator of insolvent Berwickshire-based business Orrdone Farms Ltd. - its bosses once claimed it was set to revolutionise agricultural production - has instructed solicitors to pursue a claim against company director Dr Robert Jennings who is said to be due the firm "a significant sum".
Confirmation of the legal action comes in a progress report on the insolvency by administrator Emma Porter which is published on the Companies House website today.
Only a few days ago Martin Frost, the bankrupt former chairman of the Avocet Group of companies, including Orrdone, informed shareholders: "You need to be aware that Bob [Jennings] is being sued upon allegations conceived by Begbies (Begbies Traynor are liquidators of the Avocet parent company), Aver (Ms Porter's employers), and their lawyers that all Avocet and Genfro intellectual property never had any value and was nothing more than a ruse originated by me".
And he added: "These 'Bad Bugger' allegations are a fabrication which are a deflection in a vain attempt by these people to diminish the colossal damages that US Genfro is seeking..."
The collapse of Orrdone in 2020 marked the beginning of the end for the Avocet Group. Since then, Ms Porter has been attempting to build up a picture of the company's financial affairs.
But, as she states in her latest report: "The non-cooperation of all of the directors [they include Mr Frost and Dr Jennings] has continued during the period. The administrator's work has been severely curtailed throughout the administration by the directors' failure to provide any satisfactory explanations as to the state of the company's affairs as at the date of the administration appointment".
Ms Porter repeats her previous statements that she continues to be made aware of extensive correspondence issued to a wide variety of parties commenting directly on the administration procedure or the administrator personally.
"The extensive correspondence continues to be at best, often inaccurate and in many instances inappropriate. It remains my view that the primary purpose of these communications is to deflect away from the matters in hand in order to cause unnecessary delay in the administration".
The sum due to Orrdone's secured lenders, UK Agricultural Lending Ltd., at the outset of the administration was £3.25 million plus interest and charges. The latest statement provided by UKALL shows the sum of £5.438 million remains outstanding. Interest will continue to run on the outstanding debt until it has been settled.
Ms Porter's report indicates that legal action is being considered in conjunction with claims against Orrdone's directors.
In a specific reference to Dr Jennings she writes: "The administrator considers a significant sum is due to the company by Dr Jennings. Solicitors have been instructed to pursue this matter. In order to avoid prejudicing any action, further details have not been disclosed within the report".
Unsecured creditors' claims now total £11.35 million, including a claim for £10.39 million from Omega Infinite, Orrdone's parent. At the time of administration there was just £1,291 in the Orrdone bank account, according to the progress report. Meanwhile, the time costs associated with the administration so far exceed £600,000.
In his recent correspondence to Avocet investors, Mr Frost included a witness statement he plans to submit in evidence if he is allowed to appeal a court ruling which decided he had used over £400,000 of Omega company cash to purchase two apartments in Scarborough.
The statement claims: "Bluntly, Janet (his wife) and I, the Jennings family and Omega shareholders generally are being stitched up by professional white collar thieves".
And in a reference to the Frosts' bankruptcy orders, handed down in October 2021, the witness statement says: "Judge Geddes, a (sic) earnest lady judge, though by common agreement not the brightest tool in the box, bankrupted Janet and I upon the assumption that Janet and I while not being insolvent were likely to become so..."
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