Spiralling debt revealed for failed 'cutting edge' business

by OUR BUSINESS UNIT

The money owed to a secured creditor by a failed 'disruptive technology' agri-business based in Berwickshire has skyrocketed by more than 80 per cent since administrators were sent in four years ago, according to a newly released report.

Orrdone Farms Ltd (previously called Avocet Farms) was controlled by businessmen Martin Frost and Dr Robert Jennings prior to its crash in 2020. Instead of revolutionising farm production and green fuel manufacture, as promised, the firm now has creditors claiming more than £11 million, and there are insufficient funds even to pay administrator Emma Porter.

A progress report on the administration by Ms Porter shows the sum due to secured creditor United Kingdom Agricultural Lending Ltd [UKALL] totalled £3.25 million at the date of her appointment in January 2020. With interest and charges, the figure at December 1st, 2023 stood at £5.89 million, an increase of 81.2% with interest continuing to run until the debt has been settled.

The courts recently granted an extension to the administration until January 2026. The latest report to creditors covers the period July 2023 to January 2024.

Ms Porter writes: "There has been no change in the period in relation to the non-cooperation of the directors (the board included Mr Frost and Dr Jennings). Extensive correspondence continues to be circulated to a wide variety of parties directly commenting on the administration procedure and the administrator personally. It remains my view that this correspondence is both inaccurate and inappropriate".

The report says that despite the unfortunate obstruction and deflection tactics employed by the directors, progress has been made with the sale of the company's assets.

"Numerous allegations have been made by the directors about assets and liabilities of the company, none of which have been able to be substantiated due to the lack of evidence provided".

Ms Porter considers that a significant sum is due to the company by Dr Jennings, and solicitors have been instructed to pursue this matter.

In a section of the report covering the bankruptcies of Mr Frost and his wife Janet Orr Frost, the administrator explains that she has submitted claims in both cases. "But the complexities of the case make it uncertain that a dividend will be available".

During the course of the administration process considerable time has been spent in an attempt to reconstruct certain financial records of the company. But this has been attempted using limited, incomplete and often outdated information delivered from a variety of sources.

The report also points out: "Potential creditors include 29 companies associated with the Avocet Group. It remains the view of the administrator that these companies are not genuine creditors".

Ms Porter states there are insufficient funds to meet the costs of the administration which has so far involved expenditure of £614,000.

She adds: "There are several areas where time costs have been incurred that have not been charged, such as dealing with police matters and inflammatory correspondence from the director [presumably Mr Frost]. The administrator has agreed to write off these costs. The total deduction in time costs is £98,343."