by OUR BUSINESS EDITOR
The intellectual property belonging to the forerunner of the insolvent Avocet Group of companies which was valued at £4 million in 2015 has still not been paid for following its 'sale' to an associated business now in compulsory liquidation.
Bankrupt Martin Frost, a director of AFS Ventures Ltd nine years ago when the company was to be wound up, signed a so-called Declaration of Solvency which claimed there would be a £1.1 million surplus after all debts were paid.
Later, the patents held by AFS, which had been involved in research and development for BioFuels, were supposed to have been 'sold' to Avocet Infinite PLC of which Mr Frost was chairman. And the 50,000 £1 shares in AFS were in the ownership of Loch Lomond Heritage, another firm controlled by the Frost family.
Avocet Infinite attracted 650 shareholders who invested many millions of pounds, hoping to benefit from that company's 'revolutionary air-to-fuel' developments. But not a single product was brought to market before Avocet Infinite changed its name to Omega Infinite before being liquidated.
The latest twist in the complicated nine-year liquidation process involving AFS is contained in a 'progress report' from insolvency expert Eric Walls, of KSA Group, who has been joint liquidator from the outset. He has now announced his intention to "bring my administration of this case to a close".
His newly published report covering the period January 2023 to January 2024 shows asset realisation during the 12 months totalled £14.76 (gross bank interest).
The AFS report says: "The only remaining asset detailed on the Statement of Affairs (SoA) was in respect of the company's intellectual property which had been sold to Omega Infinite PLC which is in compulsory liquidation, albeit the final level of consideration in respect of that sale has not been paid.
"It had been unclear as to whether any further funds would be realised in respect of the company's intellectual property due to the complexities of this matter and the compulsory liquidation of Omega. However, having reviewed the latest progress report from that liquidation, I now consider that the likelihood of any realisation in respect of the amounts owed for the intellectual property are extremely remote".
The only distribution of money to be made by Mr Walls will be to Her Majesty's Revenue & Customs who filed a claim for £100,650 in respect of unpaid Value Added Tax (VAT).
Mr Walls adds: "For clarity, whilst remuneration of the liquidators remains outstanding in respect of the prior MVL (Members' Voluntary Liquidation), it is not intended to lodge a claim in this respect of this liquidation. We give notice that no dividend will become payable to the unsecured creditors in this liquidation."
One of those unfortunate creditors is law firm Womble Bond Dickson - due £75,000. A solicitor from the practice, Victoria Smith, witnessed the 2015 Declaration of Solvency.
According to Mr Walls: "There are a number of legal actions ongoing in respect of a number of matters, none of which the liquidators of the company, or the company itself, are party to. I am therefore unable to comment any further on these matters as these continuing disputes may result in further legal action".
And he concludes: "Based on the reports of the joint liquidators of Omega, it is now believed that no realisations will be made".
After reading Mr Walls' report, an individual who has followed the entire Frost/Avocet saga from the AFS Ventures days onwards commented: "So that is that and it only took nine years to get……..well, where?
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