Merchant House Share Discussion Threads

[mike111d] 16/4/2013 12:13

OD, inclined to agree with you Re yet more smoke and mirrors.

[the ross] 16/4/2013 08:09

Yep on both counts.. but there's been plenty of people caught up in this. BEIA weren't part of MHG. They came in to assist with a bailout and provide funding. So have also been effected.

Z, as for your question... would have only made a difference after creditors had been dealt with. As you say, the likelihood is there's nothing anyway.

[officerdigby] 16/4/2013 07:59

Weren't Beia a front in all this. People connected to MHG management I doubt whether the money was ever there.

[zitec] 15/4/2013 20:38

Would it have made any difference in your order of payment though? ie before secured creditors?

Even so I assume the payout would be 0.01p per share (par value) so only 1/4 of the value there were when they were suspended.

Anyway the administrator report should make interesting reading and see what happened to that £2m that Beia committed.

[the ross] 15/4/2013 17:46

Yep. knew i should have supported the wind up.. hey ho.

[the ross] 15/4/2013 15:56

After my conversation with BEIA it was clear MHG was next on the folding list after MHFS was sold off. yep lets all take a look tomorrow but I doubt there's anything left. Apprently people got 50p in the pound for holdings in Merchant Cap.

[zitec] 15/4/2013 13:31

Yep, if its liquidated shareholders will be last on the list and likely to get nothing. All depends what they are holding on the books and what if anything was pushed into MC and MHFS before their liquidation(eg. Reyker debt)

In theory the £2m that Beia put in should be their somewhere as assets, this is the only chance that shareholders stand to get anything back is if MHG remains intact and relaunches as perhaps a cash shell on GXG or AIM maybe.

There should be a publication of the verdict tomorrow maybe on London Gazette, or perhaps Cameron McKenna may say if the above ref is quoted today.

[the ross] 15/4/2013 13:02

And you can support it as i've looked into this but if they decide to liquidate MHG itself.. Creditors obviously first then us.. But as there's no assets anyway...

Advice given was the only thing to raise, was the way in which the debenture was dealt with before MHFS was bought. But the FSA and others aren't bothered.

[zitec] 12/4/2013 20:39

Big day Monday, Merchant House Group PLC winding up verdict

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Date: 12 March 2013 Issue Number: 60445 Page number: 4950
Publication Date: Tuesday, 12 March 2013

Notice Code: 2450

Petitions to Wind Up (Companies)

In the High Court of Justice (Chancery Division)

Companies Court No 1109 of 2013

In the Matter of MERCHANT HOUSE GROUP PLC

(Company Number 04034645)

and in the Matter of the Insolvency Act 1986

A Petition to wind up the above-named Company of 34 Lime Street, London, EC3M 7AT, previously trading from Aldermary House, 15 Queen Street, London, EC4N 1TX, was presented on 15 February 2013 by Reyker Securities PLC of 17 Moorgate, London, EC2R 6AR (the "Petitioner"), claiming to be a creditor of the Company, will be heard at the Companies Court, Royal Courts of Justice, 7 Rolls Building, Fetter Lane, London, EC4A 1NL on 15 April 2013 at 10.30 am (or as soon thereafter as the Petition can be heard).

Any person intending to appear on the Petition (whether to support or oppose it) must give notice of intention to do so to the Petitioner or its Solicitors in accordance with Rule 4.16 of the Insolvency Rules 1986 by 1600 hours on 12 April 2013.


The Petitioner's solicitors are CMS Cameron McKenna LLP, Mitre House, 160 Aldersgate Street, London, EC1A 4DD. (Ref JOHK/ASH/132682.2).

(1781973)

[the ross] 12/4/2013 17:46

I'm getting radio silence on this one... and after speaking to a few people in the know.



Something to do with how can a company that has previously had a debenture out against a company then buy that company prior to the loan being settled.



Anyway what do I know.... point is making a call Monday to confirm it's over on the group front.

Talked briefly with Business Credit Management and Chantrey Vellacott who thought there may be a concern about the above. Only thing left was to speak with Leonard Curtis on Monday .. seen as though that's pretty much it on a companies perspective.

R

[mike111d] 06/4/2013 11:39

FYI, progress report through to March 8th 2013 now available:

[loverat] 31/3/2013 20:14

Yes - it was the classic MO of several of these directors from past companies. You should check with Companies House and see how many companies these folks have been involved with and what happened. Most of the companies have disappeared without trace and the directors moved on to cause disasters elsewhere. They are probably setting themselves up again right now, whilst dusting down and updating their CVs with details of their charity work with the elderly and in between their daily civic duties.

You could not make it up.

[giantpeach2] 31/3/2013 16:23

Yes the proposed dividend is the main reason i invested 15k into this, what was they thinking leading people along like that, they should never be aloud to run another company as long as they live. Total scum!!!!!

[moormoney] 24/3/2013 16:54

Thanks for your comments George. If a cash shell is created as suggested we would still presumably be s.holders in waiting. I've been there with ive and a couple of others! Will I never learn!

[zitec] 24/3/2013 12:32

No other way I'm aware of. MHG could pay Reyker what they owe which would stop the winding up order or the courts may deem that the Reyker debt is owed by MC and not MHG. The only beneficiary from a winding up order would be Whyte who would get first dibs on anything from his secured loans over the years. Shareholders are last on the list after everything else, pay a £1 and have a look at the MC liquidator report on Companies House/Webcheck and you can see where shareholders end up on the payment list.

They still own 30%+ of Merchant Corporate Recovery, Merchant Strategic Renewal and Merchant Turnaround although they will be worthless really as those poor bondholders will end up with a pence in the pound long term. There was word in the last month of MHG setting up a new structured products business in partnership with a London asset management company so there is still stuff going on. Don't wish to give out any false hope, I also think this is all finished but there is still that glimmer of hope and vested interest with Whyte and the other directors.

[the ross] 24/3/2013 12:22

Yes George. it seems to have been an expensive and very long 4+ years here. Your thoughts on question above.. or fruitless exercise?

[george57] 24/3/2013 12:06

I am so sorry that decent people like Ross, Sirraman, Monkey puzzle, Daicaprice, moormoney and countless others seem to have lost their money here.

I did a few quid (which i can live with) when i got out of here a while ago when it just didn't look "right".

The Directors of MHG should hang their heads in shame the way they have treated PIs. Imo they purposely ramped the shareprice at times (remember the proposed dividend?) to allow others to depart at high prices. Every director of MHG should be charged imo, and it is clear that the FSA are a toothless organisation who basically dont give a toss about the likes of us. Can anyone seriously believe any RNS that gets released from companies these days?

Companies on AIM seem to go bust on a daily basis, and half the time there is never a warning, and Directors just seem to go on their merry way with a nice few quid..

A shameful episode.

[the ross] 24/3/2013 11:52

Z,
I've been in the background making contact myself for some time, with individuals. BEIA Capital etc. With MHFS being sold off which was the last remaining Business per say, there is effectively nothing left but money to be owed to Creditors.

So after the sale, all bets are off. I've asked direct questions about the continuation of the group which sadly why I know about the above.

Genuine question.. there's no other process to support getting anything back from a Wound up company other than supporting the petition? Have had a quick read up and there has to be grounds doesn't there for the court to decide whether Shareholders are owed anything in comparison to Creditors obviously.

R

[zitec] 24/3/2013 11:12

A bit unclear as to what you mean/intend. Reyker had a claim for £50k for unpaid fees with Merchant Capital, due to the level of debt at Merchant Capital they will be unlikely to see any of that. Now if they are making a winding up claim with Merchant House Group PLC I thought they may have found some documentation that the agreement was with Merchant House Group and not Merchant Capital and try to get the money that way.

I always thought the director plan here would be to strip it down, shuffle as much debt into the soon to be terminated companies and leave a cash shell ready to change name/investment policy and relist on GXG/AIM and maintain the share structure hence the big players like Whyte and directors shares and pension funds wouldn't be lost. This also means that private shareholders would still have something left (not that that was their intention)

So has there been official word that Merchant House Group PLC is being liquidated as well?