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Chrysalis VCT: liquidation

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
yorkshirelad1
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Chrysalis VCT: liquidation

#378630

Postby yorkshirelad1 » January 19th, 2021, 4:20 pm

Further to the previous thread on the winding up of Chrysalis VCT (I was a shareholder), I have just had a letter from Antony Batty & Co Ltd (https://www.antonybatty.com/) introducing themselves and advising they have been appointed as liquidators etc. Below is the significant bits of the letter:

Antony Batty & Co wrote:CHRYSALIS VCT PLC - IN MEMBERS' VOLUNTARY LIQUIDATION

Further to the Shareholder Circular issued by the Company on 30 October 2020, I write to formally advise you that I was appointed as Liquidator of the above Company on 27 November 2020. Please note that this is a solvent liquidation undertaken in line with the VCT Winding Up regulations. It is anticipated that creditors will be paid in full and shareholders will ultimately receive further distributions equivalent to the level of the remaining net assets.

The investment Manager, in conjunction with the Supervisory Committee, will continue to work towards exits on all remaining investments in order to return funds to Shareholders as soon as practical while seeking to ensure that full value is extracted from the portfolio. This process may take some time to complete as it will likely be dependent on third parties acquiring the investments, Downing LLP also continues to act as administration manager to the Company. Downing can be contacted at (email address redacted for spam reasons) if you have any queries. Link Asset Services also continues to maintain the Company's share register.

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Re: Chrysalis VCT: liquidation

#381199

Postby yorkshirelad1 » January 27th, 2021, 12:36 pm

Communications via e-mail from the liquidators

I e-mailed to ask the liquidators if they would send future communications electronically/by e-mail in future and save paper. I have just had an e-mail back saying they will communicate electronically with me in future. I have to wait for the next communication to see the proof of this, but it's a step in the right direction. I accept that some people opt for/prefer paper communications, and some communications have to be sent via snail-mail, but I prefer less paper, and am happy with e-mail.

If you are a (direct) Chrysalis shareholder and involved in the liquidation and got the letter dated 13 Jan 2021, there was an e-mail address for contacting the liquidators on it, and that is the email I sent to and had a reply from (sorry am not posting an e-mail address in a forum for spam reasons)

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Re: Chrysalis VCT: liquidation

#381322

Postby scotia » January 27th, 2021, 6:28 pm

yorkshirelad1 wrote:Communications via e-mail from the liquidators


Yes - email would be more convenient. But snail mail communications pales into insignificance compared to the pain of getting the proceeds of liquidation in a cheque - as has happened with the Artemis liquidation. I hope the Chrysalis liquidators feel able to carry out electronic transfers ( as was carried out with the dividends).

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Re: Chrysalis VCT: liquidation

#381370

Postby UncleEbenezer » January 27th, 2021, 9:27 pm

scotia wrote:
yorkshirelad1 wrote:Communications via e-mail from the liquidators


Yes - email would be more convenient. But snail mail communications pales into insignificance compared to the pain of getting the proceeds of liquidation in a cheque - as has happened with the Artemis liquidation. I hope the Chrysalis liquidators feel able to carry out electronic transfers ( as was carried out with the dividends).


I guess you're too late to avoid that by transferring to a nominee account?

Can't remember when I last had a cheque. Since the ban on travel, I can't even get to a bank branch, so I'd have to figure out using a phone app to pay one in.

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Re: Chrysalis VCT: liquidation

#381380

Postby Kidman » January 27th, 2021, 10:07 pm

scotia wrote:But snail mail communications pales into insignificance compared to the pain of getting the proceeds of liquidation in a cheque - as has happened with the Artemis liquidation.

I am sure that the liquidators will stick to sending cheques out. I had one this morning from an investment company liquidation. Apparently it is because they can't absolutely verify that the bank account is that of the shareholder and comply with money laundering regualtions etc.

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Re: Chrysalis VCT: liquidation

#381437

Postby yorkshirelad1 » January 28th, 2021, 9:35 am

scotia wrote:
yorkshirelad1 wrote:Communications via e-mail from the liquidators


Yes - email would be more convenient. But snail mail communications pales into insignificance compared to the pain of getting the proceeds of liquidation in a cheque - as has happened with the Artemis liquidation. I hope the Chrysalis liquidators feel able to carry out electronic transfers ( as was carried out with the dividends).


The letter of 13 Jan 2021 said "Link Asset Services also continues to maintain the Company's share register." Link (formerly Capita) were, if mandated/requested, paying dividends via direct bank transfer so had bank details, so hopefully they can do so with liquidation payments. Perhaps if several shareholders who might be affected should e-mail the liquidators and request they consider using direct payment to bank account for liqudiation proceeds. At present, the liquidators seem on the ball and responsive.

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Re: Chrysalis VCT: liquidation

#381498

Postby Kidman » January 28th, 2021, 11:57 am

I would far prefer to receive a direct payment but it may need more than getting the agreement of the Registrar.

The liquidators will pay out funds from a liquidation account, not the company's own account which was used for dividends and when we give a registrar our bank account details it was for the express purpose of being a dividend mandate.

I see no reason why they shouldn't ask us for our bank details for the purposes of distributing liquidation payments but I fear it may not be as simple as that. We can but ask.

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Re: Chrysalis VCT: liquidation

#381552

Postby yorkshirelad1 » January 28th, 2021, 1:58 pm

Kidman wrote:I would far prefer to receive a direct payment but it may need more than getting the agreement of the Registrar.

The liquidators will pay out funds from a liquidation account, not the company's own account which was used for dividends and when we give a registrar our bank account details it was for the express purpose of being a dividend mandate.

I see no reason why they shouldn't ask us for our bank details for the purposes of distributing liquidation payments but I fear it may not be as simple as that. We can but ask.


Understood. I tend to agree with you about direct payments (esp in the current covid19 circs & cheques). I think I might wait for the next communication (which should hopefully reach me via e-mail) to ask about direct payment, but hopefully someone else will ask them about direct payment (I've already asked them about e-mailing and I don't want to use up my brownie points all at once!)

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Re: Chrysalis VCT: liquidation

#381574

Postby scotia » January 28th, 2021, 2:39 pm

UncleEbenezer wrote:I guess you're too late to avoid that by transferring to a nominee account?

Can't remember when I last had a cheque. Since the ban on travel, I can't even get to a bank branch, so I'd have to figure out using a phone app to pay one in.

Yes - I'm afraid that its still held as a paper certificate. Others have explained why liquidators will choose (or possibly be obliged) to issue a cheque. I wonder if it will make any difference if it is held in a nominee account. And if you want to see how painful processing a cheque without going to a bank can be - have a look at our experience with Artemis - on the Artemis board.

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Re: Chrysalis VCT: liquidation

#388725

Postby UncleEbenezer » February 22nd, 2021, 1:40 pm

For those complaining of cheques ...

I've now successfully paid a cheque into my Starling account, just by photographing it with the phone and entering some basic details. The cheque in question: my annual trail commission rebate from Wealthclub. So it works with at least one bank and app!

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Re: Chrysalis VCT: liquidation

#388736

Postby 127tolmers » February 22nd, 2021, 2:06 pm

Would that be the Wealth Club cheque which their bank issued wrongly with an extra digit in the cheque number, which then gave rise to several rounds of correspondence? So far mine hasn't bounced.

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Re: Chrysalis VCT: liquidation

#391421

Postby wilwak9 » March 2nd, 2021, 10:30 am

Hi. I’m a shareholder in Chrysalis VCT held in a Barclays nominee account so I receive absolutely zero company correspondence from them.

It would be really useful to me and other shareholders in a similar situation if any news or updates received could be shared on here.

Thank you.

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Re: Chrysalis VCT: liquidation

#391477

Postby UncleEbenezer » March 2nd, 2021, 12:01 pm

wilwak9 wrote:Hi. I’m a shareholder in Chrysalis VCT held in a Barclays nominee account so I receive absolutely zero company correspondence from them.

It would be really useful to me and other shareholders in a similar situation if any news or updates received could be shared on here.

Thank you.

You can subscribe for RNS updates (of any UK listed company) at www.investegate.co.uk . That's how I keep track of all my holdings.

But yes, sometimes posts here are useful, particularly when there's a non-RNS letter.

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Re: Chrysalis VCT: liquidation

#391510

Postby wilwak9 » March 2nd, 2021, 1:16 pm

UncleEbenezer wrote:
wilwak9 wrote:Hi. I’m a shareholder in Chrysalis VCT held in a Barclays nominee account so I receive absolutely zero company correspondence from them.

It would be really useful to me and other shareholders in a similar situation if any news or updates received could be shared on here.

Thank you.

You can subscribe for RNS updates (of any UK listed company. That’s how I keep track of all my holdings.

But yes, sometimes posts here are useful, particularly when there's a non-RNS letter.


Thank you. I do the same but Chrysalis VCT is no longer listed .... it cancelled its listing as part of the wind-up.

Hence it’s now very difficult to see any updates.

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Re: Chrysalis VCT: liquidation

#391542

Postby Kidman » March 2nd, 2021, 2:31 pm

wilwak9 wrote:Hence it’s now very difficult to see any updates.

I assume there will not be any general updates, merely a notice accompanying any distributions and an annual report reporting on progress and seeking approval for the liquidators fees.
The annual report could be of interest to you so perhaps those of us with certificated holdings can try to remember to post here any headlines that may arrive in our letter boxes?

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Re: Chrysalis VCT: liquidation

#391546

Postby wilwak9 » March 2nd, 2021, 3:00 pm

Thank you. Very much appreciated.

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Re: Chrysalis VCT: liquidation

#391765

Postby yorkshirelad1 » March 3rd, 2021, 10:14 am

wilwak9 wrote:Hi. I’m a shareholder in Chrysalis VCT held in a Barclays nominee account so I receive absolutely zero company correspondence from them. It would be really useful to me and other shareholders in a similar situation if any news or updates received could be shared on here.


I will try to remember to post here too (my Chrysalis holding is certificated), and others have already chipped in on this thread in a similar vein. I have asked for communications by e-mail and the liquidators have said they will do this. I await my first electronic missive about the liquiduation

Now as to whether they can offer payment of any proceeds direct to a nominated bank account .... ???

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Re: Chrysalis VCT: liquidation

#391810

Postby wilwak9 » March 3rd, 2021, 12:30 pm

yorkshirelad1 wrote:
wilwak9 wrote:Hi. I’m a shareholder in Chrysalis VCT held in a Barclays nominee account so I receive absolutely zero company correspondence from them. It would be really useful to me and other shareholders in a similar situation if any news or updates received could be shared on here.


I will try to remember to post here too (my Chrysalis holding is certificated), and others have already chipped in on this thread in a similar vein. I have asked for communications by e-mail and the liquidators have said they will do this. I await my first electronic missive about the liquiduation

Now as to whether they can offer payment of any proceeds direct to a nominated bank account .... ???


Thank you.

I’ve also emailed the manager and asked for email updates but as I’m not actually a shareholder (the nominee is) I’m not certain I’ll receive them

Updates here would be very much appreciated.

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Re: Chrysalis VCT: liquidation

#391813

Postby UncleEbenezer » March 3rd, 2021, 12:43 pm

wilwak9 wrote:I’ve also emailed the manager and asked for email updates but as I’m not actually a shareholder (the nominee is) I’m not certain I’ll receive them

Another FWIW,

Your shares being in a nominee account doesn't - or at least may not - mean they can't identify you as shareholder.

All my VCTs have been in a nominee account these past two years or so. But a few weeks ago then the Albion offer opened, I emailed them to ask about subscribing: would they recognise me as an existing shareholder? The answer was Yes, they had my details on file, and I should just tick the box in my application.

Sadly it was all academic anyway. There was a technical delay in the email (it sat several days on a server), and by the time I had clarification, the earlybird - and with it the existing shareholder bonus - had closed.


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