Allansons LLP has gone into liquidation. This was the company which fronted the Allansons Litigation Funding investment. There is further background to the Allansons story here.
On 29th April 2020 Antony Batty and Company LLP (“ABAC”) wrote to investors advising them that “The Board of the Company, having regard to its financial position, have decided to commence liquidation proceedings.”. The Board of Allansons LLP consists of one man – Roger Allanson.
The Allansons LLP investment is a text book example of how to manipulate a large group of investors to ensure that they do not take action.
We are told that ABAC are a straight-up company. We contacted them because we had some questions about the liquidation process. We asked:
1. How can a company for which the last two sets of filed accounts show turnovers of £218,000 in 2016 and £427,000 in 2017, end up owing £2.7m to trade creditors and £20m to ‘other creditors’ ?
The answer was that the liquidator has not yet seen any company documents or records so is unable to verify the Boards’ claim at the moment.
2. How is that £20m of investor funds are treated as ‘other creditors’ when Roger Allanson has repeatedly declared that investors are not creditors of Allansons LLP ? In fact, Roger Allanson wrote to an investor stating that if the investor were to file a winding up petition on the basis that he was a creditor of Allansons LLP then it would be disputed and the company would claim around £20,000 in costs from the investor when it wins.
We received the same answer from ABAC that this information has been provided by The Board and has not been checked.
A liquidation is a step forward for investors in some respects, but once again this stage has been carefully choreographed. Allansons LLP garnered support from investors in advance of the announcement in order to prevent concerned investors from being represented. We have no doubt the people who have been strong supporters of Roger Allanson will seek to be appointed to the Creditors’ Committee. We believe that is not healthy because investors need representatives who want to get to the truth, not ones who are friends with Roger Allanson.
Investors now have a very slim window of opportunity to have their own liquidator appointed alongside ABAC. It is very important that their interests are represented because we believe this liquidation will not result in a significant recovery for investors unless there is a separate liquidation firm with sole responsibility for investigation, forensic accounting and asset tracing.
On behalf of some of our Allansons investors we contacted Mark Hendrick at Quantuma LLP. He spoke to ABAC which confirmed they would not object to a joint liquidation. His email to us is copied below:
As promised. I can act as proxy for any creditor at the meeting to be held on the 7th May this year. The principal goal is to have Simon Bonney of Quantuma appointed to act jointly with Anthony Batty of Batty & Co as liquidator to the company. The principal directive given to Mr Bonney by creditors is to undertake a forensic investigation into the affairs and dealings of the both the company and its officers with a view to reporting the same to all creditors.
In order to be represented at the meeting (free of charge) creditors will need to complete the attached forms of proof of debt and proxy, as indicated (examples attached) and send them directly to me on email@example.com
All forms can be returned to me here so that I can ensure they are compliant for the meeting. I will also ensure they are lodged in time for the meeting as I am speaking with Anthony Batty & Co and assisting all parties.
It will also be the intention to forma creditors committee so that the committee can assist the liquidators in their dealings. This committee will be formed after the meeting next week. I will correspond with all on this point, and am happy to communicate with anyone prior to the meeting of creditors on the 7th May.
Director of Creditor Services
Here is the link to the form – How to Complete Proof of Debt Form.
If the forms have already been sent to ABAC then it is sufficient for an investor to email Mark with the statement:
“I give permission for Mark Hendrick to act as my proxy at the meeting on 7th May and I request that Simon Bonney of Quantuma LLP be appointed as joint liquidator”.
A joint liquidation means that the duties are shared and it will not result in any increase in the cost of the liquidation.