Monday, 27 July 2020

Fall out from that failed Ulster venture

EXCLUSIVE by EWAN LAMB

Insolvent Avocet Infinite PLC, the former parent company of the 'revolutionary' farming and fuel businesses, was facing a damages claim for hundreds of thousands of pounds from a couple whose farm was virtually destroyed by a botched development project.

Not Just Sheep & Rugby has already reported the story of Avocet's failed attempt to set up a demonstrator unit to showcase their 'disruptive technology' at James and Linda Christie's Ballinteer Farm, near Coleraine in Northern Ireland.

A leasing deal was signed by Mr Christie and Avocet chairman Martin Frost in May 2018 which resulted in the demolition of buildings at Ballinteer to make way for a 'cow palace' to house upwards of 250 Piemontese cattle, a £2.5 million anaerobic digester (AD) plant and other renewable energy facilities including a wind turbine.

But in the space of two months the entire venture was abandoned after Mr Frost sought to radically alter the lease conditions. Only the demolition work had been carried out leaving the Christies with a wrecked farm steading, a disastrous legacy of their short-lived business partnership.

A small farm destroyed - how Avocet left Ballinteer on abandoning their Ulster project


James Christie estimates the couple's involvement with Avocet cost them more than £800,000 not including loss of income. Two years later he does not have the financial resources to make good the structural damage inflicted by the demolition squad.

And he realises that because Avocet Infinite, now called Omega Infinite, is in liquidation he has virtually no chance of a successful outcome even if he wins the action he and his wife have raised in Northern Ireland's High Court.

The writ which dates from December 2018 seeks "damages for loss and damages sustained by the plaintiffs by reason of the breach of contract and misrepresentation of the defendant in and about a contract for the lease of premises, and about the employment of the plaintiffs by the defendant".The Christies also asked for payment of interest on their losses.

Court action followed strong claims by James Christie that Mr Frost had attempted to 'move the goalposts' of the ten-year contract to his family's detriment.

Here's what Mr and Mrs Christie were told by their tenant's chairman in a letter emailed to them on July 21st 2018:

"Avocet entered into discussions with James and Linda Christie to lease purchase the Ballinteer farm for a prepayment £100k for ten years with an option to purchase, discussions shapeshifted that Avocet could lease Ballinteer farm for £150k for ten years with no option to purchase. 

"Furthermore: Due to TB proximity, Ballinteer farm until mid-2019 or after is no longer available to breed cattle from. Due to the loss of option to purchase, an increase in farm size is no longer realistically worthwhile thereby denigrating the farm’s prospects of critical mass.

"Due to a failure in securing a proper easement for the delivery of power generated from the wind turbine the viability of the wind turbine and thereafter the AD unit becomes much more marginal.

"A syllogistic conclusion of the above meant that in economic terms Avocet should not proceed with a lease or make a ten-year loan of £150k to the Christies in respect of Ballinteer farm. 

"That said, given representations from the Orr family and others Avocet will proceed on the following variations: Upon the lease and loan signing Avocet will advance within 10 days to the Christie’s the sum of £100k.

"That Avocet will use its best endeavours to establish the viability of the AD unit and wind turbine; and if such is impartially demonstrated viable, the Christies will receive a further advance lease payment of £50k and that Linda Christie will be restored as a paid employee to the Avocet payroll.

"Until the farm is fit to harbour breeding cattle James Christie undertakes at Avocet’s directive that he will largely work offsite from Ballinteer farm.That James and Linda Christie conduct their daily business via Avocet’s nominated representative which in the first case shall be John Commins (the company's agricultural manager).

"That James and Linda Christie make weekly written returns to Avocet as directed by Avocet.
Failure to fulfil and continue to honour the above variations may prompt Avocet to withdraw from the lease, recover loan monies advanced, and terminate the employment of Linda and James Christie."

As previously reported, this set of rigorous and restrictive terms dictated by Avocet was not acceptable to the Christies even though they knew they were facing the equivalent of financial ruin.

In the months before the original agreement was finalised, James Christie was invited to work on Avocet's Berwickshire farms "for wages". Then he was to be paid £40,000 a year to manage Ballateer while his wife would receive £20,000 a year as an employee of the company.

However, according to Mr Christie he never received any of his 'Scottish wages' or the promised salaries. He has joined the creditors of Orrdone Farms (previously Avocet Farms) with a claim for unpaid work on the Berwickshire holdings.

He said: "Between us Linda and I are due about £100,000 from Avocet. Technically I'm still an employee as the company secretary Mrs Eirlys Lloyd has never sent me a P60 or a P45 or for that matter a letter telling me I've been sacked".

Mr Christie was also shocked to discover that in a letter to Avocet's 650 shareholders in March 2018 - two months before the leasing document was signed - Mr Frost announced that Avocet Agriculture Ltd. had assumed ownership of Ballinteer Farm.

Mr Frost's missive, accompanied by an aerial photograph of the farm, declared: "This weekend Avocet Agriculture has acquired Ballinteer Farm in Northern Ireland with all relevant plant and equipment along with additional contracting machinery at which farm Avocet plans to breed 250 plus Piemontese via embryo implant into surrogate mothers. Note: Ballinteer Farm has existing planning permission for wind turbines and an anaerobic digester."

Now Mr and Mrs Christie's hefty claim for damages will be lodged with insolvency specialists Begbies Traynor, currently liquidating Avocet Infinite.

Mr Frost has told Not Just Sheep & Rugby he will provide his 'understanding of Avocet in Northern Ireland' later this week.





Scene of devastation - James and Linda Christie and their two young children face this spectacle each day of their lives

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