The following note was received at 11:32AM 13th April 2012 and allowed 28 MINUTES for all potential bidders to not only express interest but also deposit their cash, otherwise deal already done.
It will be interesting in due course to find out publicly whose these lucky winners might be.
Hopefully those responsible are confident that given all the information at their disposal that they have achieved the best possible outcome for creditors and the wider community.
On Fri, Apr 13, 2012 at 11:32 AM, John Butler <John.Butler@
Dear SirsRe: Nextgenus UK CIC / Fibrestream LimitedI was approached yesterday, to act as administrator of the above companies. The appointment is likely to happen this morning.Prior to my involvement, my intended joint appointee, Fran Devine, conducted a limited marketing exercise of the business and the various networks.Mrs Devine received the following offers. We understand that the offers are from unconnected third parties.
· Cumbria - Interested party 2 - £6,000 plus £2000 over 6 months
· North Yorkshire - Interested party 3 - £6,000
Ms Devine has been in contact with the service providers whom inform her that they intend to withdraw their service today. Consequently, it is imperative any sale occurs today as continuity of service provision cannot be guaranteed and the value in the business will be severely eroded.If any party objects to the proposed sales or is prepared to make an improved offer they must submit that offer by return by 12 pm today and also transfer funds into my solicitor’s client account by 12 pm.I appreciate it is short notice but our primary duty as administrators are to maximise recoveries for the Companies’ creditors.Kind regardsJohn ButlerJohn ButlerPartnerRedman Nichols Butler
Information provided an hour earlier by the company in order to assist the joint administrators ensure that they "maximise recoveries for the Companies’ creditors" is quoted below verbatim with personally identifying data for private individuals and matters subject to Police investigation duly redacted.
Here is a first pass at potential buyers of NextGenUs UK CIC Assets and thoughts on existing bids as I am aware from the Witness Statements prepared pre-administration by devine:
NORTH YORKSHIRE
On page 37 of the Fibrestream Ltd PDF attached, Billybob seems to indicate that devine receives £500 per month for 12 months for unspecified administration costs?!
On the same page (email dated 26 March 2012, 14:09PM Billybob to Devine), Billybob talks about the loan being part of the deal
North Yorkshire - the £6k valuation was previously discussed with Billybob Garrett in the context of including him writing off the £15k loan that he made to the business; it now appears (p33 of Fibrestream PDF, email Billybob to devine 28 March 2012 10:52) that he has separated and is seeking repayment of said loan in full whilst offering £6k for the network as a separate transaction.
This places a very poor valuation upon the network which has input running costs from Nynet Ltd of £500 per month vs revenues of £20 x80 = £1600 per month i.e. £1100 per month nett income.
POSSIBLE BUYERS:
LN Communications, Phil Beadnell, http://www.lncomms.
Similarly Alexander Cliff
3A Dublin Meuse
Edinburgh EH3 6NW
Similarly I may wish to put a consortium bid together also at these kind of prices and am meeting with potential partners this weekend.
ASHBY/DIGBY
SH is interested in understanding the financials and very serious about putting in a bid, possibly for the Fibre network in Ashby or simply the wireless networks on the RAF base and Digby village
Also AB Internet http://wireless.
and Javelin Broadband http://www.
http://www.gigaclear.com/
HULL
I understand that both Steve Jagger (whose number you have already) from Quickline Communications and Joe Tandey from Sure Broadband http://www.
CUMBRIA
There are a number of customers who have expressed interest in investing, e.g. TW
DISCONNECTION RISKS
In terms of the risks of the various networks being switched off immediately, you need to understand the following:
K-C has previously stated that they wish to see continuity of service and would not act impetuously to switch off service;
Quickline Communications Ltd have previously stated that they are ready and willing to provide immediate continuity of internet backhaul at no charge in the event that K-C did cut off service.
And it is important to note that there remain some 360 customers on the Hull network whilst customers have been made aware for the past month that the company has been seeking investors etc to continue as a going concern i.e. the attrition rate is low.
As regards Ashby/Digby, Virgin media have, similarly to K-C, indicated that they have no intention of disconnecting customers impetuously. Customers do not have an alternative fast broadband service available if any at all.
As regards North Yorkshire, again customers do not have an alternative broadband service available and Nynet are not going to cut service as being 100% owned by North Yorkshire County Council cannot be seen politically to be disadvantaging the local community in this way.
As regards Cumbria, the network is under total lockdown.
As discussed I have copied in the CIC Regulator who is aware of this matter.
Kind Regards,
As an investor on the above list I'd like it known I was never approached by either administrator. I had the finances and tech know how and being a local the perfect choice to serve the community. Which brings me onto the issue of CIC assets being sold to a none CIC company against the benefit of the community!!
ReplyDeleteCIC regulator has been informed!
But the CIC didn't own any assets did it...
ReplyDeleteThe CIC did indeed own the network assets which is why this rammed-through pre-packed deal is such a disgrace.
ReplyDelete