The Lemon Fool

E-mail from Chrysalis (I hold, and receive communications via e-mail from them)

Chrysalis VCT wrote:Chrysalis VCT plc in Liquidation - Shareholder Update and Further Distribution

I am pleased to report that the Chrysalis VCT Supervisory Committee has now issued a final update on the liquidation of Chrysalis VCT plc and has also confirmed details of a final distribution. The update can be found on the following link:

Chrysalis VCT Update December 2023

The Liquidator has also issued a new formal annual report:

Liquidator's progress report year to 25 November 2023

A final distribution of 0.3735p per share will be paid on 12 January 2024. No further distributions will be made to shareholders after this and the Liquidator will work towards closing down the Company and, in due course, striking it off.

Further information about the Company is available on the Administration Manager's website as follows:

http://www.downing.co.uk/existing-investor/chrysalis-vct

URLs:

Chrysalis VCT Update December 2023
https://assets.website-files.com/63c93b0d4e6adc3ca93d8c14/658461aaa0366f5c2b9fe242_Shareholder%20Update%20December%202023.pdf

Liquidator's progress report year to 25 November 2023
https://assets.website-files.com/63c93b0d4e6adc3ca93d8c14/658461954db83cd111bf392e_Liquidators%20Progress%20Report%20to%20Nov%2023.pdf

https://www.downing.co.uk/existing-investor/chrysalis-vct

Interesting info in the shareholder update, re the final distribution of 0.3735p per share on 12 January 2024

Shareholder update wrote:Shareholders should note that, although this distribution is being paid more than three years after the commencement of the start of the liquidation (which the is prescribed winding up period in the VCT regulations for certain tax reliefs), the VCT status has not been withdrawn by HMRC and the Company has been advised that this distribution should still be tax free to all “VCT qualifying” shareholders.

See: Chrysalis VCT Update December 2023
https://assets.website-files.com/63c93b0d4e6adc3ca93d8c14/658461aaa0366f5c2b9fe242_Shareholder%20Update%20December%202023.pdf

At last they've admitted that the final 5p distribution was a figment of their imagination.
42p gain in 23 years for original investors, that's pretty poor but Martin Knight and his cronies have had directors' fees and then liquidator's advisor's fees so he has done well out of it.
At least we can say as in the the end of the opera Pagliacci, "La Commedia è finita" (the comedy is finished).

Fare thee well fellow former shareholders.

Payment (presumably) final distribution of 0.3735p per share received into my bank account today (12 Jan 2024). I am (was!) a direct certificated shareholder.

21 Dec 2023 shareholder update with explanation of the payment :https://assets.website-files.com/63c93b0d4e6adc3ca93d8c14/658461aaa0366f5c2b9fe242_Shareholder%20Update%20December%202023.pdf

I thought the Chrysalis story was over and then in this morning's mail I got a letter from the liquidator asking for a raise in the cap on their fees.

Interesting to read that the liquidator partly blames the liquidation advisors, the former directors and managers (whose appointment I voted against).

What puzzles me is if the cap is raised where will the extra money come from? Did the liquidators hold enough back? The amounts seem relatively small.

Kidman wrote:I thought the Chrysalis story was over and then in this morning's mail I got a letter from the liquidator asking for a raise in the cap on their fees.

Interesting to read that the liquidator partly blames the liquidation advisors, the former directors and managers (whose appointment I voted against).

What puzzles me is if the cap is raised where will the extra money come from? Did the liquidators hold enough back? The amounts seem relatively small.

Perhaps the liquidators used to be stockbrokers?
https://quotefancy.com/media/wallpaper/3840x2160/4827449-Woody-Allen-Quote-A-stockbroker-is-someone-who-invests-other.jpg

Adrian

Kidman wrote:I thought the Chrysalis story was over and then in this morning's mail I got a letter from the liquidator asking for a raise in the cap on their fees.

Interesting to read that the liquidator partly blames the liquidation advisors, the former directors and managers (whose appointment I voted against).

What puzzles me is if the cap is raised where will the extra money come from? Did the liquidators hold enough back? The amounts seem relatively small.

I have received no such letter so far (20/2/24).
So I went back to the Downing Investor Centre for the Chrysalis Liquidation Documentation. The "ShareHolder Letter December 2023" was apparently the latest info on the liquidation, and it informed shareholders of a final distribution of 0.3735p per share on 12th January 2024. There was apparently no mention of any problems with liquidator fees. But there was also a further document - "Liquidator's Report November 2023", which I appear to have ignored. I have now opened it, and it starts with a letter from the Liquidator (Antony Batty & Co) dated 20/12/23. It then proceeds with a resolution which requires a vote of all shareholders to increase (or not) the Liquidator's fee to £55000. Votes should be submitted by 26/1/24. Clearly I did not vote. Apologies to all of you who knew all about this, and voted. Perhaps the letter referred to by Kidman only went to voters?
The remainder and largest part of the Liquidator's document was dated 20/12/23, and provided a Progress report from 26/11/22 to 25/11/23

scotia wrote:Perhaps the letter referred to by Kidman only went to voters?

It appears to be more confusing!
I didn't get any previous letter (and hence didn't vote last time) regarding this fee increase yet this letter says
"I previously sent out a written resolution but due to the resolution not being accepted by a majority of those entitled to vote, ..."

The meeting proposed now is on 13 March, it appears to be virtual only but apparently one can send a proxy vote by email in advance.

Kidman wrote:

scotia wrote:Perhaps the letter referred to by Kidman only went to voters?

It appears to be more confusing!
I didn't get any previous letter (and hence didn't vote last time) regarding this fee increase yet this letter says
"I previously sent out a written resolution but due to the resolution not being accepted by a majority of those entitled to vote, ..."

The meeting proposed now is on 13 March, it appears to be virtual only but apparently one can send a proxy vote by email in advance.

The letter you referred to has been delivered in the early afternoon of 22/2/24. It is dated 13/2/24.
It does not appear to explain where this extra payment of £25000 plus VAT will come from. The distribution to shareholders of 12th January 2024 was described as the final distribution. Is this a quibble between the management and the liquidator as to how they will share the current remains?

scotia wrote:[Is this a quibble between the management and the liquidator as to how they will share the current remains?

If you're expected to vote on the matter, perhaps you should seek clarification from both parties?