Has any shareholder (or former TPSA officials) contacted Deloitte LLP and and RSM Restructuring Advisory LLP ?
It appears that:
1. Flybrid Automotive LLP was 100% owned by Torotrak - otherwise the last 3 fundraisings would have been fraudulent, on the part of the directors.
2. There is the issue of the Flybrid loan note worth approximately £1.7m
3. There is substantial cash and the pile is actually growing as assets are sold, although being depleted at a lesser rate than the administrators fees.
4. It seems that there should be a distributable dividend, albeit small. available for shareholders after the claims by preferential creditors have been setttled - contrary t o the statement by Deloitte!
5. The sale of the Flybrid asseets and IP rshould offset the amount owed on the Flybrid loan note but Deloiitte may not be accounting for this as bizarrely Flybrid Automotive LLP is outside their control (despite being 100% owned by Torotrak - unless a fraud is being perpetrated).
I can only wish Guido Dumarey the best of luck. He has a huge advantage over Torotrak's management - he is an entrepreneur, with an established, profitable business in the motor industry. In contrast , TRK's management never established a regular income stream; they seemed to expect other companies would do the dirty work of making and selling. The big question is how many of the opportunities mentioned in the report are still active.
I liked the description of Torotrak's current position as the company "seems to be in financial trouble" and I am still puzzling over how a 20 cm diameter flywheel is squeezed into 15 cm.
The Previous Updates on the Deloitte website has a Joint Administrators Proposals dated 23rd of January 2018. Within the document (page 14) it refers to TDL intellectual property and states since our appointment, we have contacted a number of parties who have expressed an interest in buying TDLs intellectual property .. in order not to prejudice the outcome of on-going negotiations, no further information on this asset can be disclosed at this time.
Is there a possibility that the estimated value for this particular asset does not reflect possible outcomes of on-going negotiations?
Further in the document it also gives an indication of their maximum estimate time costs = £250k and £350k !
The Deloitte information does not include any realisable valuation for Flybrid Automotive Ltd because their administration is being handled by a separate administrator (RSM Restructuring Advisory LLP).
It is a bizarre situation:
1: Torotrak own 100% of Flybrid (after repayment of the loan note)
A similar statement from RSM is therefore required, before calculation of any residual assets from both the (artificially separated) companies. Whether this would make any significant difference is currently unknown.
From the £3,202,298.05 estimated realisation value of assets, subtract the £3,200 owing to preferential creditors and the £2,975,232.52 owing to unsecured non-preferential claims, leaving £223,865.53 from which, I assume, the Administrator's fees will be taken.
So expect to receive less than 0.04 pence per share.
Jon Hilton appears to have got rid of Doug Cross as a director of Flybrid Automotive Ltd, or perhaps he just resigned but Hilton is now the sole director. Probably a few more shenanigans to come, with the ongoing legal dispute between Torotrak and Flybrid.
1. Torotrak had £3.7m in cash as of 30/09/2017
2. The loan note to Flybrid was for £1746171.73
3. Virtually al the staff had been made redundant and this had already been accounted for in the huge restructuring costs.
4. No pension fund liabilities (staff have pensions with Aviva)
So there was approximately £2m residual cash before sale of any remaining assets. If it was only Alan Robson, Rex Vevers and perhaps a secretary then it is difficult to see how they would manage to blow £2m in a couple of months - even if they drank their own weight in champagne and had lots of expensive meals out A.K.A 'networking'.
There are just under 549m Torotak shares, so perhaps a conservative £1m is left after administrators fees and any other liabilities then this would amount to 0.182p per share, assuming that any remaining assets (including IP) are worth zero. There may still be some company interested enough to make a fairly derisory bid (Allison/ZF?) which might up the sum slightly.
Perhaps it is possible that shareholders might receive enough to buy a pint/fill their tank with petrol/drown their sorrows with a bottle or even a case (depending on number of shares held)?
The Flybrid angle is a bit weird because Hilton and Cross filed an application to put Flybrid Automotive Limited into administration before Torotrak had a chance to sell it (having already sold it 100% to Torotrack, minus the loan note)!
Not holding out much hope though, as administrators have a nasty habit of stretching out the period of their administration, such that their total fees just happen to equal the amount of residual cash.
I very much doubt there will be any return for current shareholders.
Fortunately I sold out just before the lights were turned out at a tremendous loss.
Very sad as the buffet at Leyland was an annual favourite, also the faux grass cutting exercise and it's hard to forget driving around the leyland test track in a Torotak enabled Ford Discovery with imaginary pound notes dangling from the obstacles.
Happy days which turned out to be very expensive adventure park experiences.
Torotrak did have a few million in the pot, at the time they went into administration and their known liabilities were considerably less than this sum. So what are the odds of shareholders receiving a (very) small sum, or will the ex-directors manage to pocket any residuals, after administrators fees, payments to creditors etc, because of their contractual arrangements?
I have a horrid feeling that Jon Hilton and Doug Cross will still manage to snaffle another £1.8m, despite their failure to ever deliver a single sale!
"Does someone actually get paid for this sort of rubbish?"
Now, why wasn't the question being asked of Michael Walters when the price of Torotrak shares was in the £5 to £6 area?
Didn't somebody tell us how well they were doing with IDOX here not so long ago?
Here are my notes on that chart: http://www.screencast.com/t/UmwCOt8pU
In case you're wondering (though I'm pretty sure you're not :o), I haven't altered a thing in the posting of it (though I have amended subject line for this thread).
Been a while since I started this thread but I think it's worth another go
Genuinely sorry for all those that lost their investment in TRK, I took a big hit as well but I've made it back and more beyond
If you'd invested in QFI when I suggested it, you'd be sitting on a loss still, but all that is about to change. Take a look peeps, it's a great British company with an innovative solution that is on the cusp of commercialisation
Would it be worth displaying Flybrid at this event in March 2018?
It's too late for TRK (they have made a habit of being too late) but someone else might think it worthwhile. Will Ricardo display their flywheel solution there? That would indicate their continuing interest in mechanical storage.
Although I sold out some years back, it was a poor investment for me too.
If there's one thing I've learnt it is to take all statement by a company with a pinch if salt, and only use information that they have to publish together with their accounts for investment decisions. Everything else is potentially froth or c&&p, depending upon your point of view.
As the assorted IVTs purr to a halt for the last time and Adam '20p' Robson with his fellow directors box up the debris from Aston Way, it is to be hoped that still working prototype versions will be preserved for future generations.
There are few better places for this than the Deutches Museum, Munich, which specialises in exhibits from science and technology:
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