'Avocet' shareholders investigated by liquidators

 by DOUG COLLIE

Hundreds of shareholders in the insolvent Avocet Infinite PLC 'disruptive technology' firm have been asked by the company's joint liquidator to provide proof that they actually paid for their stake in the troubled business. 

Last October directors of Avocet Infinite changed the company's name to Omega Infinite, apparently to avoid assets being seized by creditors. But in March of this year a court in Leeds issued a Winding Up Order which in turn resulted in the appointment of insolvency specialists Begbies Traynor as liquidators.

There have been claims made in recent months that a significant proportion of the £22 million worth of Omega shares had not been paid for. Now, more than seven months after assuming responsibility for the firm's affairs Begbies Traynor are attempting to assemble a so-called list of contributories.

The word contributories covers all those persons who are responsible to make payment to a company at the time of its winding up. Unless the court dispenses with the settlement of a list of contributories, the liquidator prepares the list.

According to the official description: "If the name of a shareholder falls in the list of contributories, he becomes liable to pay only such amount which has so far not been called and paid by him on the shares held by him."

In a letter circulated to all Omega Infinite shareholders, joint liquidator Ashleigh Fletcher explains that preparing the list will take some time as there are a large number of shareholders in the company.

He adds: "We are still in the process of identifying and collecting any relevant company records; and it has been asserted that a number of the shares in the company are not fully paid. That is an issue which you will appreciate we are duty bound to consider and investigate before settling the list of contributories.

"Accordingly it would assist if you can explain and provide evidence as to how and when your shares were paid up".

Mr Fletcher then asks shareholders to confirm how they paid for their shares, to which entity the payment was made, whether shares were granted in lieu of work completed on behalf of the company or an associated entity. A response is requested by December 29th.

Businessman Martin Frost, chairman of Omega Infinite, and of its 'replacement' Avocet Natural Capital (ANC), urges shareholders to provide evidence to Begbies Traynor in a letter to ANC stakeholders issued today.

Mr Frost goes on to reveal: "On ANC Plc active measures are underway to sell its intellectual property housed within its subsidiary company Avocet IP Limited. Once done, Avocet IP Limited will be mothballed with the creditors fully paid, and then the free proceeds will be returned to the current registered ANC Plc shareholders. Note: this is likely to take 12 months."

 On Omega Infinite Plc, Mr Frost indicates that Gennfros Limited [a new company set up to take forward the development of a 'revolutionary' fuel additive] "has made various offers to settle company creditors, some of which are now satisfied."

And Mr Frost, joint life president of Gennfros but not a director of that company adds: "Gennfros has agreed to use the services of Fieldfisher (the law firm which applied to have Omega Infinite wound up) to pursue past wrongs caused by members of the ‘Zoom Cabal’, the naughty present intromissions of Mr. Neal Thompson (late of Edwin Thompson) and Mr. Sandy Jeffrey.

"Gennfros Limited is in discussions with Begbies Traynor to restore Omega Infinite Plc to the Company Register and providing Gennfros Limited stands aside a distribution is likely to all bona fide Omega Infinite Plc shareholders as determined by Begbies."

Both Mr Jeffrey and Mr Thompson claim to be owed substantial sums of money as creditors of the Avocet group.