The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Nickkdog et al. I e-mailed Johanes today. He kindly provided an outline of his e-mail to FCA. I've just sent my e-mail to the FCA based on the template provided.
Johanes - Please feel free to share my e-mail address with Nickkdog.
Regards,
Bugerov.
I didn't expect much by way of response from Begbies Traynor, but here is the response I received today:
Thank you for your email, the contents of which are noted. The Joint Administrators will be undertaking investigations into the affairs of the Company.
You are not a direct creditor of the Company in Administration so please contact Audley Funding plc (directors@audleyfunding.com) for further information.
It is understood that the Trustee for the Audley noteholders is Truva Trustees Limited so you may wish to contact them also (info@truvatrustees.com).
Kind regards
Adam Shama
for Paul Cooper – Joint Administrator
Nick/Johanes et al,
E-mail sent today:
'As a holder of Audley Funding Plc 2017-F2 12% Fixed Rate GBP Secured Notes I read with concern that NQ Minerals Plc were placed into Administration on 9th August 2021. Whilst I appreciate no investment is 100% ‘safe’, I felt some comfort in knowing that I had invested in investment grade notes with senior security over the underlying assets. Indeed, without these risk-reducing factors, I simply would not have invested in them.
I was alarmed to read recent claims on a share discussion forum that the Audley Funding notes had been subordinated as part of debt restructuring in 2020. As I had previously heard nothing about this from Audley Funding nor NQ Minerals, I e-mailed both. I received a response from Audley Funding stating the notes had been subordinated at a meeting at Bedford Row on 1st May 2020. They provided a hyperlink to a letter dated 9th April 2020 from Mr David Lenigas asking noteholders to vote in favour of the debt restructuring to release asset security of existing notes. I never received any such correspondence, so never voted. It goes without saying I would not have voted in favour of a proposal to significantly increase the risk to my investment. Indeed, I find claims incredulous that 95-98% of noteholders allegedly agreed to this proposal.
Of the private investors on the discussion forum, none were informed of the debt restructuring proposal, none received the letter from David Lenigas, and none had voted. I genuinely cannot understand why anyone would vote to damage their own investment and, combined with the lack of awareness, I wonder how many investors were made aware and actually voted.
I respectfully request that Begbies Traynor investigates the minutes of the Bedford Row mtg on 1st May 2020, to:
1. Confirm a vote was taken to subordinate noteholder senior debt of Audley Funding Plc noteholders.
2. Confirm a quorum was present to constitute a legal vote, and
3. Confirm who voted, and did the votes equate to a legally defined quorum?
I ask all for the above because the lack of awareness brings into question whether due process was correctly followed in terms of communicating to noteholders. This further leads to questions in terms of; was quorum achieved of the voting members and who voted and agreed to the proposal?
I would respectfully ask that Begbies Traynor investigate the concerns I have highlighted to ensure the Administrators of NQ Minerals can be totally sure how assets should be assigned.'
Nickkdog - thank you for sharing your research and thoughts.
Best wishes... Bugerov.
Johanes - I was also using Reyker Securities as a custodian.
I'm not sure this helps in any dispute as with no custodian in place NQ Minerals could claim it was difficult to contact note holders. Conversely, note holders could legitimately claim being unsighted to any debt restructuring plans and not being able to vote. It would be interesting to hear from others whose notes where held with other companies to see if they were contacted about the restructuring.
I find it astonishing 95-98% of note holders would agree to a plan that subordinated their senior holdings, thereby dramatically increasing risk to their investment. That's just crazy.
Best wishes.... Bugerov.
MF would be better if they provided the bull and bear case at the same time, allowing potential investors to see both arguments and make a decision. The way they publish an article, then several days later publish another with 180 degree change of mind just undermines their credibility.
I can only assume Porsche doesn't hold any Av shares?!? If UK stocks are that rubbish and the US stocks are clearly superior then surely any held position in Av would have been sold up ages ago to buy US stocks.
This being the case, why does Porsche visit this particular forum to tell us all what a poor investment we have etc? I don't hear from him/her on BP/RDSB etc.
I suspect you're right NSS. A quick search on https://www.statista.com/statistics/284323/united-kingdom-hmrc-tax-receipts-fuel-duty/ reveals for FY19/20 fuel duty receipts in the UK equated to £27.57 bn. This is a reasonable amount the UK Government will need to recoup from elsewhere once fossil fuel usage is slashed.
I wouldn't be surprised to see no free EV charging points in future. The government will look to tax it.
Good afternoon. I received an e-mail response from 'donotreply@audleyfunding.com'. I basically asked for confirmation of subordination, highlighting I was aware of the debt restructuring, but the circular I saw didn't mention any subordination. The response opened with apologies this is a standard letter. Rest of e-mail and link to the relevant doc as follows:
'The situation of NQ is far from resolved and remains in the hands of restructuring specialists who have an obligation to report progress as part of the administration process.
Audley Funding is a creditor of NQ minerals and will be in close contact with the restructuring team at Begbies as the matter works through the processes required to determine the future of the company.
Audley Funding will keep an eye on developments and be part of discussions as to the future of the company. At this point, it is too early to tell what the outcome will be for investors.
Investors in Audley Funding have the security set out as described in the most recent noteholders meeting'
https://audleyfunding.com/onewebmedia/Audley%20funding%20plc%20-%20series%202017-F2%20-%20Notice%20to%20Noteholders%20-%2009.04.2020.pdf
I'm no expert in these matters so can't really add any comment of value at this stage.
Regards..... Bugerov
Nickkdog - if you do contact FCA could you share your e-mail on here? I'd be tempted to use it as a template to write to them myself.
Best wishes.
Nickkdog. No sadly, heard nothing. I spoke to my broker about a week ago who knew less than I did. I couldn't find anything on Begbies Traynor's website, so e-mailed them (yesterday) for the latest and to ask where updates can be found as the situation develops. I'll share any response on here.
I found the following (unsurprising statement) re the dividend due to be paid ~27 Aug on www.investegate.co.uk:
'The Issuer announces that interest due on the Series 2017-F2 Notes on 27 August 2021 has not been made to holders of the Series 2017-F2 Notes.
The assets and security backing the Series 2017-F2 Notes is described in the Investment Memorandum dated 14 May 2018 as supplemented and amended in the manner described in the notice to Noteholders dated 9 April 2020 and principally consists of loans and related security made by the Issuer to NQ Minerals PLC (the "Borrower").
As a result of the non-payment of amounts by the Borrower to the Issuer, the Issuer currently has insufficient funds to meet its obligations under the Series 2017-F2 Notes.'
Regards... Bugerov